Global deal activity down by 25.1% in April 2022, finds GlobalData

A total of 4,649 deals (comprising mergers & acquisitions, private equity, and venture financing deals) were announced globally during April 2022, which is a decline of 25.1% over the 6,071 deals announced during the previous month, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that the deal volume during the month was also lesser by 23.4% compared to the monthly average of the first quarter of 2022.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Deal-making sentiments affected across several key markets in Q1 2022 compared to Q1 2021 and now the dampened deal-making sentiments also seem to continue through Q2 2022 due to market volatility and uncertainty amid the ongoing Russia-Ukraine conflict.”

Though North America continue to account for the highest share in deal activity, the region witnessed drop in deal volume by 24.2% from 2,558 deals in March to 1,940 deals in the month of April. Akin to North America, all the other regions also witnessed decline in deal activity. Europe, Asia-Pacific, South & Central America, and Middle East & Africa regions witnessed decline in deal volume by 20.4%, 29.4%, 33.7% and 33.7%, respectively.

Deal activity also remained subdued in most of the key markets in April compared to the previous month. The number of deals announced in the US, China, Canada, India, the UK and Germany decreased by 24.3%, 39.2%, 23.3%, 27.3%, 22.7% and 22.1%, respectively.

Bose concludes: “All the deal types (under coverage) also witnessed decline in deal volume in April 2022 compared to the previous month. The number of private equity, venture financing and merger & acquisitions deals decreased by 24.9%, 28.4% and 21.8%, respectively, in April compared to the previous month.”

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