Global deal activity plummets by 43.1% YoY in February 2023
Global deal activity across all regions and types suffered a massive 43.1% decline in February 2023 as venture capital investors grapple with the uncertain geopolitical tensions, lower GDP growth, inflation, and rising interest rates, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that global deal volume witnessed a massive 43.1% year-on-year (YoY) decline from 5,813 deals to 3,307 deals* in February 2023.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The ongoing Russia-Ukraine conflict, geopolitical tensions, macroeconomic headwinds and recession fears seem to be taking a significant toll on the deal-making sentiments across most of the key markets.”
The US continued to top the chart by deal volume in February 2023 followed by the UK, China, Canada, India, Japan, Germany, France, Australia and South Korea. All these top 10 markets by deal volume in February 2023 registered decline.
The US saw deal volume fall by 45.7% in February 2023. Meanwhile, the other top markets such as the UK (31.5%), China (28.2%), Canada (41%), India (50.8%), Japan (50%), Germany (46.7%), France (28.7%), Australia (45.9%), and South Korea (56.1%) also experienced YoY decline.
As a fallout of setbacks experienced in the key markets, deal volume declined across all regions. Deal volume declined by 45.1% in the North American region while Europe, Asia-Pacific, Middle East & Africa and South & Central America experienced decline by 41.3%, 42.2%, 37.8% and 47.3%, respectively.
All the deal types (under coverage) also witnessed massive double-digit decline in deal volume. The number of private equity deals and venture financing deals declined by 45.4% and 49.4%, respectively, while merger and acquisitions deal volume fell by 36.6%.
*Mergers & acquisitions, private equity and venture financing deals.