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Laxman Pai, Opalesque Asia: 2023 remained a disappointing year for deal activity (mergers & acquisitions (M&A), private equity (PE) and venture capital (VC)) with a massive drop in volume and was grappled with several challenges and uncertainties, said a study.
According to GlobalData, a total of 52,534 deals were announced globally during 2023, a decline of 24.5% compared to the announcement of 69,606 deals during the previous year.
An analysis of GlobalData's Deals Database reveals a drop in volume for all the deal types under coverage during 2023 compared to 2022. The trend was alike across all the regions and key markets.
"Several macroeconomic challenges and uncertainties created volatile market conditions throughout 2023. The year began with a cautious outlook and the dent in dealmaking sentiments continued to prevail throughout on the back of the ongoing geopolitical tensions, inflation, hike in interest rates, and recession fears," said Aurojyoti Bose, Lead Analyst at GlobalData.
"While all the deal types suffered setbacks during the year, deal-making was notably down for PE/VC firms," Aurojyoti added.
For instance, the number of M&A deals fell by 17.2%, whereas the volume of private equity and venture financing deals declined by 28.3% and 33.6%, respectively, during 2023 compared to the previous year.
As per the report, North America, which holds the lion's share in global deal activity, registered a considerable decline of 29.2% in volum...................... To view our full article Click here
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