Global uncertainty causing delays but not stopping deals

The global business landscape has been affected by various uncertainties, impacting dealmaking processes. According to Taylor Wessing M&A partner Dannie Hanna and Paul Thorpe, tariffs and conflicts have had a significant impact on deals in Ireland. The surge in defense spending and the increase in overseas private equity (PE) have also played a role in shaping the current business environment.

In 2024, the Irish business sector witnessed a rapid expansion of private equity, both from domestic and international sources. A total of 74 PE deals were finalized in 2024, more than double the number from the previous year. Some notable transactions included the acquisition of gaming services company Keywords and waste management firm AMCS by Swedish private equity company EQT. Of particular interest was the rise in deals conducted by non-Irish PE firms, with a significant contribution from British-based companies. This trend is expected to continue, with London firms showing a keen interest in the Irish market.

The uncertainty stemming from tariffs and conflicts has led to delays in the dealmaking process. While transactions are still happening, the time taken to finalize deals has increased. Companies are proceeding with caution, navigating through the challenges posed by global uncertainties.

Despite the challenges, there is optimism in the business community. Companies are adapting to the changing landscape, finding ways to navigate through the uncertainties and continue with their strategic initiatives. The surge in defense spending has presented new opportunities for businesses operating in that sector. This increase in spending has led to a rise in deals, as companies look to capitalize on the growth in defense-related industries.

The rise in overseas private equity investments has also been a significant development in the Irish business sector. International investors are showing a strong interest in the Irish market, attracted by the growth potential and opportunities it offers. This influx of foreign capital has fueled dealmaking activities, contributing to the overall expansion of the Irish business landscape.

In conclusion, while global uncertainties have impacted dealmaking processes, companies are finding ways to adapt and thrive in the current business environment. The surge in defense spending and the rise in overseas private equity investments have presented new opportunities for businesses in Ireland. By navigating through the challenges and embracing the opportunities that arise, companies can continue to drive growth and success in an ever-evolving global economy.