APAC deal activity dips 19.6 percent: GlobalData

Deal activity in the Asia-Pacific region saw a 19.6 percent downturn during January and February of 2024, according to the latest data from GlobalData.

According to the data analytics and consulting company findings, a 19.6 percent year-on-year dip was noted in deals covering mergers & acquisitions [M&A], private equity and venture financing deals.

A total of 1,843 deals were announced in the APAC region during January-February 2024, compared to the 2,292 deals announced during the same period in the previous year.

The top 10 APAC markets including China, India, Japan, Australia, South Korea, Singapore, Malaysia, Hong Kong, Indonesia and Thailand all witnessed a 23 percent YOY decline. 

The GlobalData report said each country saw a YOY drop in deal volume by 23 percent, 12.9 percent, 23.5 percent, 3.2, 12.2 percent, 13.2 percent, 32.4 percent, 28.3 percent, 38.1 percent, and 28.6 percent during January-February 2024. 

Aurojyoti Bose, lead analyst at GlobalData said, “The deal activity trend for the APAC region was no different from other regions. 

“In line with the global trend, all the deal types under coverage witnessed YoY decline in volume during January-February 2024.”

The number of M&A deals declined by 20.2 percent during January-February 2024 compared to the same period in 2023, the findings stated. 

The volume of venture financing deals and private equity deals were down by 17.6 percent and 45.6 percent YoY, according to the report. 

Bose said, “Again akin to the global trend, several key markets within the APAC region experienced subdued deal activity during the first two months of 2024.”

“In a challenging global landscape, the decline in deal activity across the Asia-Pacific region underscores the need for resilience and adaptability within the market. 

“While these figures may reflect short-term fluctuations, they also present opportunities for strategic recalibration and innovation to drive sustainable growth in the future,” Bose said.