Water Mergers & Acquisitions: Trends and Deal Flow, Q3 2023

25 Sep 2023
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To date, Bluefield has recorded 210 deals in 2023, representing a 29% decline compared to the 294 deals recorded during the same period in 2022. Overall, the market, like others, has been hobbled by externalities including recession concerns, rising cost of capital, and general economic uncertainty during the first half of the year.

The second half of the year typically features higher M&A activity, although Bluefield anticipates year-end deals to fall below the five-year annual average of 370.

Private water deal flow increased during Q2 2023 following a quieter first quarter, with American Water and Central States Water Resources ramping up activity across their core service territories. While the total number of approved acquisitions during H1 2023 was the lowest since 2019, the pipeline of pending and announced applications remains strong with 146 deals.

In this Quarterly Review:

  • M&A activity picks up among leading IOUs after slow start to 2023
  • Digital water M&A remains quiet while top-line growth in the sector booms
  • M&A activity among financial institutions rebounds in the second quarter
  • Strategics’ interest in M&A highlights patience

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