Global M&A

Global M&A cascades lower as macroeconomic headwinds and geopolitical uncertainty continue to plague the international deal space.

Global deal value in 1H23 dropped 35% from 1H22 as the war in Ukraine, soaring energy costs and concerns around inflation and interest rates continue to impact market sentiment.

Global mid-market M&A has likewise dropped. Deal volumes in 1H23 are down 30% and values dropped 37% from 1H22.

Despite challenges, M&A remains a crucial tool for unlocking synergies and building scale – and companies are turning to dealmaking to digitalise their organisations and expand into new markets.

In North America, persistent inflation and tighter financing conditions have been ongoing concerns impacting markets. Regardless, signs of recovery are in sight: primarily that stock markets are once again surging amid signals that the US Federal Reserve’s monetary tightening policies could be coming to an end.

Big-ticket deals have all but evaporated from the European deal space, mired by a gloomy economic outlook. However, there is some solace: while the Ukraine-Russia war rages on, major escalations and chances of the conflict spilling over into the rest of the continent appear slim, providing a sense of calm and confidence.

Within Asia-Pacific, the Chinese economy continues to struggle although a recovery could be a near-term possibility. India and other emerging markets, bolstered by promising growth potential, are generating interest and deal momentum.

-21% -35%

1H23 deal volume (18,164) declined from 1H22 (23,013 deals)

1H23 deal value (approx. AU$2tn) decreased from 1H22 (approx. AU$3.1tn)