Dealmaking is set to rebound in 2023 in the UK thanks to stored up "dry powder" and less volatile markets. This follows the turbulence of 2022, that caused a slump in M&A activity after what had been a record-breaking year for fund raising in 2021. Now with all this undeployed capital stored up, firms will be looking to invest it as confidence returns to the market.

This sentiment has been shared on Wall Street as bankers at Goldman Sachs predict a resurgence in dealmaking arriving after the first quarter. It is believed that "corporate clients would pounce on deals when financing began to flow again" because of the amount of liquidity in the sector.

According to Peel Hunt, "Volatility and depressed valuations will continue to make UK PLC a juicy prospect for investors with private equity firms poised to snap up firms on the cheap". This has been evidenced by a plethora of M&A deals in the last year by foreign, private buyers snapping up British companies.