A total of 40,374 deals (comprising mergers & acquisitions (M&A), private equity, and venture financing deals) were announced globally during the first three quarters (Q1-Q3) of 2023.
This represents a year-on-year (YoY) “decline of 24.3% in volume over 53,369 deals announced during the same period in 2022,” according to GlobalData, a data and analytics company.
An analysis of GlobalData’s Financial Deals Database also revealed “that all the deal types under coverage recorded a considerable year-on-year decline during Q1-Q3 2023 compared to Q1-Q3 2022.”
The total number of M&A deals and private equity deals “declined by 17.3% and 27.5% during Q1-Q3 2023, respectively, compared to the same period in 2022, while the volume of venture financing deals declined by 33%.”
Aurojyoti Bose, Lead Analyst at GlobalData, comments:
“Subdued deal activity remains a common phenomenon across all regions. Uncertain economic conditions took a hit on the global deal landscape and resulted in a massive decline in deal activity. Geo-political tensions are impacting deal activity largely, while inflation, recession fears, and the ongoing Russia-Ukraine war are also having a notable impact on deal-making sentiments. Resultantly, deal activity took a hit in most of the key markets across these regions.”
The North American region witnessed “a decline of 28.5% in deal volume during Q1-Q3 2023 compared to Q1-Q3 2022, while Europe, Asia-Pacific, the Middle East and Africa, and South and Central America regions also saw respective deals volume decline by 20.5%, 20.6%, 26.2%, and 29.1%.”
Meanwhile, deal volume also “declined in several key global markets.”
For instance, the US, China, the UK, Canada, India, Japan, Germany, Australia, France, and South Korea “registered a decline in deal volume by 30.3%, 13.8%, 15%, 11.5%, 28.9%, 17.4%, 22.2%, 20.7%, 17.7%, and 31.8%, during Q1-Q3 2023 compared to Q1-Q3 2022, respectively.”
As covered, 4,000 of the world’s companies, “including over 70% of FTSE 100 and 60% of Fortune 100 companies, make business decisions” thanks to GlobalData’s data, analysis and solutions, all in one platform.
GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, “including the healthcare, consumer, retail, financial, technology and professional services sectors.”