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Laxman Pai, Opalesque Asia:

According to a report by PWC, in the first half of 2024, while the value of M&A deals rose by 5% compared to the first half of 2023, overall transaction volume fell by 30%, continuing a downward trend that started in 2022.

The report, '2024 Mid-Year Outlook: Global M&A Industry Trends' revealed that in the first half of 2024, deal volumes were just over 21,000 and deal values reached $1.3tn. This is a far cry from the record levels of activity in the second half of 2021, which saw almost 34,000 deals and deal values of $2.7tn.

The greater impact this downturn is having on PE firms than on corporates said the report.

M&A activity involving a financial sponsor was down 39% in the first half of 2024. For corporates, the decrease was 23%. While that is still significant, the corporate share of the M&A pie has increased from 60% in the previous two years to 64%. This can be attributed in part to the competitive advantage of corporates' lower dependence on debt.

Meanwhile, PE has fared better from a deal value perspective, primarily because of some larger deals in the first half of the year. While the top corporate deals this year easily surpassed the largest PE ones, the deals PE firms have been involved in suggesting that the industry's appetite to do larger deals is coming back.

Some of the larger PE buyout deals announced so far this year include the $12.6bn acquisition by an investor group led by private equity firms Stone......................

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