APAC notes 23.8 percent deal activity downturn: GlobalData

Deal activity in the Asia-Pacific region saw a 23.8 percent downturn in January, compared to the prior year according to the latest data from GlobalData.

The findings showed 910 merger and acquisitions (M&A) private equity and venture financing deals, were confirmed in the APAC region this past January, compared to the announcement of 1,194 deals during January 2023. 

Aurojyoti Bose, lead analyst at GlobalData said, “Deal activity remained subdued globally with all the regions experiencing a decline in deals volume owing to the dent in deal-making sentiments amid the volatile market conditions.”  

“APAC region also saw a decline, but it was relatively lesser compared to all other regions,” Bose said. 

Data from its Deal Database found all types of deals dipped while more specifically M&A deals in January dropped 29.5 percent compared to while private equity and venture financing deals volume declined by 68.8 percent and 15.8 percent. 

The APAC markets also saw softer deal activity with China and India recording a decline of 20.9 percent and 33.9 percent. 

Other markets under the APAC umbrella including Japan, South Korea, Australia, Malaysia, Hong Kong, Indonesia and Thailand saw a YoY decline in deal volume by 25.5 percent, 16.7 percent, 6.8 percent, 23.5 percent, 25 percent, 46.4 percent and 41.2 percent, according to the report. 

Wider global dips 

Despite the dip in APAC activity, the report noted the region still outperformed in other global regions.  

North America, Europe, the Middle East and Africa, and South and Central America experienced a year-on-year decline in the deal volume of 38.4 percent, 35.8 percent, 33 percent, and 52 percent.