IPOs and M&As – what could be next and why should you take notice?

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Record breaking years, mega deals, and a possible resurgence of IPOs. We look at what's happening in capital markets and explore why it matters to the everyday investor.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

28 September 2023

Picture this. It's midway through 2022 and after a record year in 2021, the merger and acquisition (M&A) market is firing on all cylinders. Interest rates are low, cash is flowing freely around the economy and valuations are booming as consumers get back out after long lockdowns.

A perfect environment for M&A but not one set to last. June 2022 will be remembered as a turning point for M&As. The US Federal Reserve (Fed) made its first move to raise interest rates, starting what would turn into the fastest rate hiking cycle for a generation.

What followed sent waves through capital markets as businesses faced higher inflation, increased cost of capital and slowing economic growth. Thoughts turned inwards, to