A total of 3,929 deals (comprising mergers & acquisitions (M&A), private equity, and venture financing deals) were announced globally during May 2021, which is a decline of 16.8% over 4,720 deals announced during the previous month, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during the month shrank by 25.5% compared to the monthly average of the first quarter (Q1) of 2021.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Deal activity showcased some signs of improvement towards the end of Q1 2021, with March showcasing growth in deal volume. However, with cautiousness weighing heavily on investor sentiments, the momentum could not be sustained for long, as April reversed the growth trend and May also witnessed further decline in deal volume.”
While North America continued to account for the highest share deal activity, the deal volume for the region declined by 15.8% from 2,243 deals in April to 1,888 deals in May. North America is followed by Europe, Asia-Pacific, the Middle East and Africa, and South and Central America. Akin to North America, all these regions also witnessed decline in deal activity.
Deal activity also declined in most of the key markets in May compared to the previous month such as the US (by 16%), the UK (12.2%), China (52.3%), Canada (16.0%), India (8%), Japan (30.3%), Australia (4.1%), France (17%) and South Korea (25.3%). However, markets such as Germany, Sweden, Brazil, Denmark, Indonesia and the UAE witnessed improvement in deal activity.
Bose continues: “All the deal types (under coverage) also witnessed decline in deal volume in May compared to the previous month. The number of private equity, M&A, and venture financing deals declined by 3.3%, 11%, and 25.7%, in May compared to the previous month, respectively.”