18 Aug 2021
Posted in Business Fundamentals
Global deal activity declined by 2.4% in July 2021, finds GlobalData
A total of 4,995 deals (comprising mergers & acquisitions [M&A], private equity, and venture financing deals) were announced globally during July 2021, which is a decline of 2.4% over 5,118 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 although fewer deals were announced during July compared to the monthly average of Q1 2021, the figure was higher than the monthly average of Q2 2021 by 8.8%.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although global deal activity declined in July, not all the markets witnessed decline. In fact, some of the key markets saw an improvement in deal activity. However, it was not enough to offset the decline in other regions with Europe being one such region.”
North America continued to account for the highest share of deal activity, followed by Europe, Asia-Pacific, South and Central America and Middle East and Africa. North America also witnessed growth in deal volume by 1.5% from 2,114 deals in June to 2,145 deals in July. Asia-Pacific was the only other region that witnessed an increase in deal activity, while all other regions have witnessed decline in deal activity.
However, deal activity increased in some of the key markets in July compared to the previous month, such as the US (by 0.9%), Canada (8.3%), India (7.6%), Japan (7.4%), Spain (30.7%) and South Korea (28.4%). Meanwhile, deal activity declined in markets such as the UK, China, France, Germany, Sweden, Brazil, and Norway.
Bose continues: “Some of the deal types (under coverage) also witnessed decline in deal volume in July compared to the previous month. The number of private equity and M&A deals declined by 7.2% and 4.9%, respectively, while venture financing deals increased by 1.7% in July compared to the previous month.”