Dealmaking in Europe continued its slow start to 2023 as transaction volumes for February fell on an annual and month-on-month basis.

There were 1,006 deals recorded across the continent during the month, representing a 17.6% drop from January and a 26.8% fall from February 2022, S&P Global Market Intelligence data shows.

More positive for deal advisers was the month-over-month rise in aggregate deal value to €23.82 billion from €17.67 billion in January. That number will likely rise further as more data from the month becomes available, although it remains some way off the €40.68 billion aggregate of deals inked in February 2022.

The lull in M&A activity adds further pressure to investment banks. There was hope M&A activity would be boosted by easing macroeconomic uncertainty, but the collapse of Silicon Valley Bank and concerns about the European banking system amid the emergency takeover of Credit Suisse Group AG by UBS Group AG suggest a more temperate operating environment is still distant.

The numbers would have looked more encouraging had stock exchange operator Euronext NV not withdrawn its €5.5 billion bid for wealth management technology company Allfunds Group PLC. Analysts had raised concerns about the lack of synergies between the two companies and Euronext's ability to meet Allfunds' own valuation.

* View the deal profile page for the Rothschild transaction. * Access financial highlights for Rothschild & Co.

The largest deal in February was the take-private of Rothschild & Co. SCA by Rothschild Concordia SAS, the holding company of the Rothschild family and the target's largest shareholder.

Rothschild & Co. offers financial advisory, wealth and asset management, and merchant banking services. It is one of several offshoots of the family dynasty that has been active in global financial markets for more than 200 years.

It would be more appropriate for Rothschild & Co. to be a private entity, as the business does not require access to capital from public equity markets, and its performance should be judged over the long term, the Rothschild family said in a press release. The offer came days before Rothschild & Co. reported a 21% year-over-year fall in EPS for 2022.

The €48-per-share offer represents an implied equity value of €3.46 billion and a one-day premium of 19.3%. Several other family and private investors have agreed to participate in the deal alongside the Rothschilds.