The global M&A market remained resilient in 2022 despite unprecedented uncertainty, according to a new report from global broker WTW. The report found buyers outperforming the wider market as recently as the third quarter, based on share price performance and completed deals.

However, deal volume slowed significantly in 2022 compared to last year’s record pace. Multiple factors have impacted M&A this year, including geopolitical turmoil, skyrocketing inflation, climbing interest rates and worries about a global recession. These issues are expected to continue into next year, making it more difficult for buyers to predict the profitability of potential targets, WTW said.

“An unprecedented number of disruptive forces have created headwinds for dealmakers, but they are also generating opportunities,” said Massimo Borghello, head of human capital M&A consulting, Asia-Pacific at WTW. “The fundamentals that drive dealmaking are still in place and, with valuations moderating after the historic levels reached in 2021, strategic and financial buyers alike will take advantage of better-priced opportunities for growth.”