M&A activity within the Irish market increased 10% last year when compared to 2022, new figures show.
The data from William Fry shows that 334 qualifying deals were recorded in 2023.
However, the total deal value came to €11.8bn, down €3bn or 20% on the previous year.
Five deals were worth more than €500m, while most transactions continued to be categorised as mid-market - with 86% of deals worth between €5m and €250m.
Financial services remains the largest sector by value at 35%, while technology, media and telecoms accounted for 25% by volume in 2023.
"Against a global backdrop of negative economic and political news, Ireland's mergers and acquisitions (M&A) market in 2023 proved to be resilient," said Mark Talbot, a Corporate/M&A Partner at William Fry.
Mr Talbot said that dealmaking in Ireland remains very healthy by historical or pre-Covid standards.
"A large proportion of Irish M&A activity is driven by non-Irish acquirors whose appetite to do higher value deals was somewhat diminished in 2023 by factors such as rising interest rates, high inflation and political instability," he explained.
Looking ahead to 2024, Mr Talbot said the outlook for M&A in Ireland is mixed.
"On the one hand, a more stable interest rate environment coupled with Ireland's resilient economic performance will encourage positivity, with many Irish companies continuing to punch above their weight," he said.
"Conversely, it will be difficult for the Irish market to avoid the considerable risk that negative international factors could lead to a conservative approach being taken by strategic and PE buyers in 2024.
"Ireland faces a national election at some point in the next 15 months. The potential for significant policy changes not only in Ireland but also in the jurisdictions of our largest FDI acquirors seems unlikely to help encourage more active dealmaking in 2024," he added.
