More than 80% of U.S. middle-market companies and private equity firms agree that company valuations will be stable or higher in 2023 after a year of big price adjustments, according to an annual survey by Citizens Financial Group Inc.

Most middle-market companies among the 400 respondents to the Citizens’ 2023 M&A Outlook expect better conditions in 2023 after macroeconomic uncertainty, inflation and steep losses in equities derailed deals in the past year.

Sixty-two percent cited growth as their motivation for M&A deals, up from 48% in 2022.

“When the macro conditions normalize, we see a pipeline of buyers and sellers eager to return to the market,” said Jason Wallace, head of M&A advisory at Citizens Financial Group CFG, +0.51%, in a prepared statement.

Some of that optimism is reflected in shares of bank stocks in 2023, which have started out in positive territory thus far.