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Laxman Pai, Opalesque Asia: After a tough 12 months, the global M&A deals are poised for disruption in 2024 remains considerable, exacerbated by a packed election calendar and a complex regulatory landscape raising more hurdles, scrutiny, and longer timetables to complete deals, said a study.
Recent data from WTW's Quarterly Deal Performance Monitor (QDPM) indicates a downturn in global mergers and acquisitions (M&A) activity in the final quarter of 2023, with buyers facing challenges in adding value.
The study reveals that M&A deal performance hit an all-time low in Q4 2023, with companies completing deals underperforming the wider market by -13.6 percentage points for acquisitions valued over $100 million.
In 2023, global deal volume experienced a 27% decline, with 619 completed transactions compared to 853 in the previous year. Large deals, valued over $1 billion, were down by 30%, continuing a trend that began in 2020.
According to WTW large deals (valued over $1 billion) were down by 30% in 2023, continuing a steady decline that began in 2020, with 145 completed compared with 208 in 2022. Eleven mega deals (valued over $10 billion) closed in 2023 compared with 15 in 2022. These numbers potentially indicate a new baseline and return to pre-pandemic levels.
"It has been a tough 12 months. M&A deals have been weighed down by geopolitical conflict, recession fears, rising interest rates, and the high cost of capital," said David Dean, managing director, of...................... To view our full article Click here
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