GlobalData, a UK-based leading data and analytics company, has revealed that a total of 7,245 deals, including mergers and acquisitions (M&A), private equity, and venture financing contracts, were announced in the Asia-Pacific (APAC) region during the first half (H1) of 2023, a 20.9 percent drop from the 9,154 deals announced during the same period in 2022.
An analysis of GlobalData’s Financial Deals Database identified that all the deal types under coverage witnessed a year-on-year (YoY) fall in deal volume in H1 2023. The numbers of mergers and acquisitions, private equity and venture financing deals declined by 10.8 percent, 8.1 percent and 29.4 percent, respectively, during H1 2023 compared to H1 2022.
Mr. Aurojyoti bose, lead analyst at globaldata said that “Owing to factors such as rising interest rates, high inflation, fear of recession and geopolitical tensions, deal activity has remained sluggish globally in 2023 so far and the APAC region is not an exception to this global trend.”
In fact, the most significant markets in the APAC region saw a double-digit dip in deal volume in H1 2023 compared to H1 2022. For example, China, the largest APAC market, witnessed an 11.6 percent drop in deal volume YoY in H1 2023.
Other key APAC markets, including India, Japan, Australia, South Korea, Singapore, Hong Kong, Indonesia, and New Zealand, experienced year-on-year shrinks in deal volume of 31.4 percent, 14.3 percent, 22.4 percent, 37.5 percent, 23.5 percent, 23.7 percent, 43.7 percent, and 28.4 percent, respectively, in H1 2023 compared to H1 2022.
GlobalData’s unique data, expert analysis, and creative solutions enable 4,000 of the world’s leading companies, including more than 70 percent of the FTSE 100 and 60 percent of the Fortune 100, to make faster and better business choices. GlobalData’s objective is to assist clients in decoding the future so that they may be more successful and inventive in a variety of areas, including healthcare, consumer, retail, financial, technology, and professional services.