|
Laxman Pai, Opalesque Asia: Global M&A suffered a record decline in the first half of 2023 as interest rate rises and economic uncertainty hit financing. Activity for deals valued over $100 million slowed significantly around the world during the period, with a total of 280 deals completed compared to 441 during 1H 2022, said a study.
According to a study by WTW run in partnership with the M&A Research Centre at The Bayes Business School, this represents a 37% drop in volume and the lowest figure for the first half of a year since 2009.
The challenging macroeconomic conditions are acutely evident in the North American market, where volumes fell for an unprecedented sixth consecutive quarter from a near all-time high of 173 deals in the third quarter of 2021 to just 61 deals between April and June 2023.
In addition to the low number of M&A deals, acquirers that completed transactions in 2023 also underperformed the market by -2.1pp (percentage points). This represents a marked decline following the positive performance of +4.4pp in the second half of 2022.
However, despite the continued volatility, global M&A still achieved an overall positive performance of +1.4pp for the last 12 months.
The deal performance during the first six months of 2023 would have been substantially worse if not for the Asia-Pacific region, where buyers continue to outperform the rest of the world. APAC acquirers outperformed their regional index by +10.9pp. With 72 deals closed in ...................... To view our full article Click here
|
RSS
