The number of mergers and acquisitions (M&A), private equity and venture financing transactions declined across the world in the first eight months of the year.
GlobalData, a leading data and analytics company, recorded 32,050 deals in between January and August 2024, marking a 15% year-on-year (YoY) decline in deal volume compared to the 37,724 deals announced during the same period in 2023.
During this period, M&A deals volume registered a YoY decline and the number of private equity deals fell by 13.4%. Venture financing deals saw a 23.9% drop. The company attributed the decline to global economic uncertainty.
“Amidst the challenging market conditions, deal activity across all the regions as well as most of the markets within these regions has taken a hit,” said Aurojyoti Bose, Lead Analyst at GlobalData. “Factors such as macroeconomic challenges and geopolitical issues are likely influencing the deal-making activity. It will be important for dealmakers to navigate this complex environment with strategic foresight and adaptability.”
Decline in the US, Europe and MENA
In MENA, total deal activity fell 10.4% in the first eight months of 2024, GlobalData’s report revealed. This reflected the overall market trend, as North America registered an 18.9% YoY decline in deal volume, while Europe, Asia-Pacific, Middle East and Africa, and South and Central America experienced a decline in deal volume of 16.2%, 8.1% and 27.3%, respectively.
When broken down by countries, the US, the UK, China, Canada, Germany, France, Italy, and the Netherlands witnessed YoY decline in deal volume by 18.3%, 9.1%, 22.4%, 24.4%, 19.4%, 34%, 14.4%, and 18.4%, respectively.
India and Japan were the notable exceptions to register improvement in deal activity during the review period.
The business opportunity
While the global decline in global deal activity reflects uncertainty regarding the global economy at this point in time, analysts also highlighted that it could present a unique opportunity for strategic consolidation and long-term value creation.
“The dip in deal volume, particularly in major regions, may open doors for savvy investors and companies to acquire undervalued assets and strengthen their positions for the eventual market rebound,” Bose said.
