North America posted one of the largest regional declines in the first 8 months of the year
Deal volume has slowed in the first eight months of 2023 as geopolitical tensions and economic uncertainties weaken investor sentiment across regions and key markets.
Canadian deal activity was down 14% year-over-year, the fourth largest decline behind the US (29%), China (16%), and the UK (16%), while global volume was down 24% to 36,176 deals according to GlobalData.
The firm’s Financial Deals Database includes mergers & acquisitions (M&A), private equity (PE) and venture financing. The number M&A deals declined by 17.6% while the volume of PE and venture financing deals declined by 25.9% and 32.2%, respectively.
North America led deal volume but posted one of the largest declines (28%) in deals globally. Declines in other regions were: Europe (20%), Asia-Pacific (22%), Middle East and Africa (27%), and South and Central America (30%).
“Deal-making sentiments have taken a dent amid the economic uncertainties, geopolitical tensions, and recession fears. And the trend is alike across all the regions and several key markets,” said Aurojyoti Bose, lead analyst at GlobalData. “In this climate of economic uncertainty and geopolitical tensions, the world of deal-making faces unprecedented challenges. Adaptability and strategic resilience will be paramount for investors seeking to thrive in these turbulent times.”
