  After a somewhat subdued 2022, Morgan Stanley experts are predicting a surge in mergers and acquisitions activity in 2023. Here are the key drivers behind the expected upswing:
🔹 Strong companies making acquisitions in their core businesses
Corporates with robust balance sheets are well-positioned to pursue acquisitions in their core markets, particularly in healthcare, technology, and energy sectors.
🔹 Financial sponsors deploying capital and exiting investments
Private equity firms, holding record amounts of uninvested capital, are expected to deploy that capital in M&A deals, including exit transactions for companies in their portfolios.
🔹 Shareholder activism driving corporate change
Companies with uneven performance are likely to face shareholder activism, resulting in demands for corporate change and a push for more M&A activity.
🔹 Cross-border M&A making a comeback
Cross-border M&A deals are likely to increase in the coming years, as companies around the world look to fortify global supply chains and invest more internationally to achieve that goal.
Overall, the growth in the private equity industry, sophisticated corporate clients, and strong corporate balance sheets are expected to drive increased M&A activity in 2023 and beyond.