Just 16% of merger and acquisition (M&A) leaders expect higher deal volumes in 2023, according to KPMG's annual M&A outlook survey.
44% of those surveyed said they believe deal volumes will remain broadly stable, while 40% think they will decrease.
74% of respondents said they will pursue M&A opportunities this year, with 72% believing it will be a buyers' market.
According to KPMG, this has reversed recent trends and conditions which were considered seller favourable.
"Although respondents expect 2023 to be a buyers’ market, we expect continued competition for attractive Irish businesses in select sectors such as healthcare and financial services," said David O'Kelly, Partner, Head of M&A at KPMG in Ireland.
"Appetite remains strong from private equity with record levels of dry powder and corporates with strong balance sheets.
"We continue to see strong competition for targets with resilient business models and high performing management teams" David continued," he said.
Despite a number of high-profile technology firm restructures, today's report finds that M&A leaders expect the tech sector to be most active in 2023 as investors look to strengthen their existing offering and capitalise on lower valuations.
Healthcare and pharmaceuticals, and energy and infrastructure are also expected to be active this year.
59% of those surveyed believe that strategic buyers rather than financial buyers will drive M&A in 2023.
Today's report reveals that rising interest rates are expected to drive M&A leaders to fund transactions from a reduced level of debt, with 51% identifying availability and cost of financing as the primary obstacle facing deal activity in 2023.
