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Laxman Pai, Opalesque Asia: The global M&A market has hit the pause button in 1H 2022, after soaring to an all-time peak in 2021, said a study.
Early 2022 saw the value of large deals (more than $25 million) fall 24 percent from a year earlier, on a 12 percent drop in deal volume, according to McKinsey M&A Practice review of the global M&A market.
However, the 2022 numbers match healthy, pre-pandemic levels and are especially notable in a time of great uncertainty. Geopolitical instability, spiking inflation, supply chain issues, skittish capital markets, regulatory changes-all these factors, and more, are fueling uncertainty.
Andy West, global co-leader of McKinsey's M&A Practice, said: "Uncertainty always weighs on decision making, and M&A is a big decision for deal makers. So naturally, we're seeing a bit of a slowdown."
The study pointed out that 2022 activity has declined, but only slightly. Deal makers in the Americas have been the most active traders, delivering almost half of worldwide deal value (48 percent, versus 52 percent for all of 2021). Europe, the Middle East, and Africa's share is up slightly (28 percent, versus 26 percent), as is Asia-Pacific's share (24 percent, versus 22 percent).
The heavy hitters of 2021 remain the dominant deal makers of 2022. The technology, media, and telecommunications sector (TMT) have outperformed other industries-accounting for 30 percent of total deal value (lagging its 32 percent in 2021 but nearly match...................... To view our full article Click here
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