Global M&A deal value plunges by 44 percent in Q1 2023 – GlobalData
The global downward trend in M&A deal activity was observed across all regions on both a year-on-year and quarter-on-quarter basis, indicating investors are more cautious about M&A activity.
New report by GlobalData – a leading data and analytics company – shows that the total value of global mergers and acquisitions (M&A) deals declined sharply by 44 percent to $413 billion in Q1 2023, from $744 billion in Q1 2022. The decline resulted from concerns over a global economic slowdown caused by a spike in inflation and rising interest rates.
GlobalData’s latest report ‘Mergers and Acquisitions Deals by Top Themes and Industries in Q1 2023 – Thematic Intelligence,’ reveals that the total M&A deal count also fell by 23 percent, from 10,003 in Q1 2022 to 7,738 M&A deals in Q1 2023. The market slowdown in Q1 2023 also impacted the number of mega deals worth over $1 billion each. A total of 79 mega deals were completed in the quarter, which was a decline of 45 percent compared to the same quarter last year.
“An ongoing trend is the dominance of North America in M&A deal activity. In Q1 2023, it accounted for 3,209 deals worth $208 billion, making it the most active region in the global M&A market,” says Priya Toppo, Analyst, Thematic Intelligence at GlobalData.
However, the global downward trend in M&A deal activity was observed across all regions on both a year-on-year and quarter-on-quarter basis. This indicates that investors are more cautious about M&A activity.
Toppo concludes: “Given the slump in global M&A deal activity in Q1 2023, the outlook for M&A over the rest of 2023 remains relatively subdued, with likely further increases in interest rates and the prospects of mild recessions in several key markets. However, the M&A market will likely rebound as we head into 2024, as acquisitions remain a key element of corporate strategy.”
- Election justice and state stability
- Tinubu gets what he wants, promises Nigerians all we want
- Charting the Lower River Niger opens investment opportunities for Nigerian trade
- Emerging synergy between youth participation and sustainable development
- Progress in the implementation of Nigerian port reform
Most Popular News
- MultiChoice, partners to launch integrated payment platform
- TCN continues pursuit of robust grid with projects in its Benin region
- Africa Finance Corporation secures $625 million syndicated loan
- Central banks must enhance transparency to build trust – IMF
- Afreximbank launches $3 billion Country Programme with Kenya
- Foreign and joint investments in Saudi industrial sector exceeds $146bn
Quick Search for Upcoming Events
Featured Growth SMEs
Fiwa International Services Limited
Creates access to growth businesses in West Africa for Private Equity and Venture Capital
Thank you for signing up your organization. This is short description.