Global deal activity down 10.2% in January-October

Deal activity in January-October 2022 witnessed a 10.2% decline year-on-year, with 24,841 transactions recorded.

The slowdown was attributed to various factors, including macroeconomic headwinds, geopolitical uncertainty, and rising interest rates.

Mergers and acquisitions (M&A) activity

M&A activity declined by 13.7% to 17,947 deals during the January-October period, with a total value of $3.2 trillion, a 16.2% decrease compared to the same period in 2021.

The decline was primarily due to a significant drop in large-scale transactions, with deals valued at $5 billion or more decreasing by 26.9%.

Venture capital (VC) activity

VC activity also experienced a slowdown, with deal volume decreasing by 12.7% to 11,958 deals in the January-October period.

The total value of VC deals reached $794.1 billion, a 19.4% decrease compared to the same period in 2021.

Private equity (PE) activity

PE activity declined by a smaller margin, with deal volume decreasing by 6.4% to 7,764 deals in the January-October period.

The total value of PE deals reached $1.2 trillion, representing a slight increase of 1.8% compared to the same period in 2021.

Industry trends

The technology sector continued to be the most active industry for M&A, VC, and PE activity, accounting for 26.8%, 29.4%, and 32.1% of total deal volume, respectively.

Other notable industry trends included increased activity in the healthcare, energy, and financial services sectors.

Geographical trends

North America remained the most active region for deal activity, accounting for 44.2% of global deal volume.

Europe and Asia-Pacific followed with 28.3% and 21.3% of global deal volume, respectively.

Outlook for 2023

The outlook for deal activity in 2023 remains uncertain, with many experts predicting a continuation of the slowdown.

However, some sectors, such as technology and healthcare, are expected to remain active, and there may be opportunities for opportunistic investors in distressed assets.