David Ewing’s outlook for the 2023 M&A market

18/01/2023
Read Time: 2 Min
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David Ewing recently spoke to Real Deals about the market outlook for 2023 and what it means for ECI’s investment and exit pipeline.

David and Xhulio Ismalaj discussed how we are currently in a fairly new macroeconomic environment and what that may mean for the M&A market. He comments, “The large-cap market slowed ahead of the mid-cap market, so I’d expect to see a slightly quieter 2023.”

However, he also commented that from ECI’s perspective, while multiples may come off by a little bit it’s unlikely to come off by much, and the way that ECI think about growth means that the macro-environment isn’t the most important driver for success. He comments, “Typically we’re growing our portfolio companies by about 25% per annum. Whether the economy is at a plus two or a minus two, it doesn’t really matter that much to the performance of the portfolio companies. Whether it’s 23% or 27%, there’s still healthy growth across the portfolio. We would expect the portfolio to continue to grow during a change in the economic cycle and that is what is bearing out.”

David and Xhulio also discuss ECI’s investment and exit pipeline and expectations for 2023. Visit the full article to find out more!

About the author

David Ewing

I joined ECI in 2001 after an early career in software development, and since then have largely focussed my time at ECI on software and digital businesses. I’ve had the pleasure of working with some really great and ambitious management teams including our current portfolio companies: Zenergi, Avantia, Ciphr, ATG, Peoplesafe, Bionic and MiQ. Back […]

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