Gaming M&A Market Trends in 2023

The COVID-19 pandemic fueled a surge in M&A activity in the gaming industry, with numerous high-profile deals taking place. However, the market has since cooled down due to economic headwinds and rising inflation. Despite this, experts believe the industry remains strong and poised for growth. Agnitio Capital founder Shum Singh recently hosted a panel at the Montreal International Games Summit to discuss the current state of M&A in the gaming industry. Singh noted that while deals are taking longer to close, there is still plenty of interest and capital available for investments. The panel consisted of experts with extensive experience in the gaming industry, including Marc Alloul, Jakob Longer, and David Dropsy. They discussed the challenges and opportunities in the current M&A landscape, including the importance of strategic planning, due diligence, and deal structure. Longer emphasized that companies are being more cautious and taking a more strategic approach to acquisitions, focusing on filling gaps in their business and achieving specific goals. Dropsy highlighted the shift towards performance-based earn-outs and the increasing complexity of deal structures. The panel also stressed the importance of founders being 'deal-ready' and having their houses in order before entering into negotiations. Ultimately, the experts agreed that the gaming industry remains an attractive space for investments, with plenty of opportunities for growth and consolidation.