07 May 2020
Posted in Business Fundamentals
Global deal activity grew 12.6% in second consecutive week of growth during week ended May 3
A total of 1,131 deals were announced globally during the week ended May, 3, 2020, which is an increase of 12.6% over 1,004 deals announced during the previous week, according to GlobalData’s deals database.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “This marks the second consecutive week of growth in deal volume amid volatile market conditions since the COVID-19 outbreak. The number of deals announced during the week was also more than the weekly average levels of April 2020. However, it is still lower than the Q1 2020 weekly average levels.”
Deal activity increased in most key markets during the week ended May 3, 2020 compared to the previous week. Deals volume rose in the US (by 16.7%), the UK (23.9%), China (28.1%) and Canada (9.2%), as well as, Australia (25.5%), India (11.4%) and Germany (25%). Meanwhile, South Korea, Japan and France witnessed decline in the number of announced deals by 14.3%, 2.9% and 50%, respectively.
Deal activity in sectors such as healthcare (including pharmaceuticals and medical equipment) and retail improved during the week ended May 3, 2020 compared to the previous week while the travel & tourism sector declined.
Most of the key deal types witnessed growth in deal volume. While mergers and acquisition (M&A), private equity and venture financing deals volume increased by 20.4%, 27.9% and 10.5% during the week ended May 3, 2020 compared to the previous week, the number of equity offerings and licensing agreement deals increased by 28.9% and 44.4%, respectively. However, the number of partnership and debt offering deals declined by 7.2% and 8.2%, respectively.