A total of 13,726 deals* were announced globally during the first quarter (Q1) of 2023, which is a decline of 29.1% over 19,357 deals announced during Q1 2022, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Financial Deals Database reveals that although there was a YoY decline in deals volume, March showcased some improvement compared to a fall in deal activity in the previous two months. There was a rebound in deal volume by 6.6% in March 2023 compared to February 2023.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “As the current geopolitical tensions are adversely affecting the global economic situation, deal makers have become cautious. The trend is alike across geographies, with recession fears impacting deal-making sentiments significantly.”

While all the regions contributed to the decline, North America continued to dominate the global deal landscape during Q1 2023 despite subdued activity. The region witnessed a decline in the announcement of deals by 34.3% in Q1 2023 compared to Q1 2022. Europe, Asia-Pacific, the Middle East & Africa, and South & Central America also saw a decline in deals volume by 22.5%, 26.5%, 28.9%, and 33.3%, respectively.

Deal volume also declined year-on-year in most of the countries during Q1 2023. The volume decreased in the US by 35.8%, China (18.9%), the UK (19.5%), India (38%), Canada (18.9%), Japan (20.7%), Germany (25.9%), France (23.4%), South Korea (39.5%), and Australia (20.3%).

All the deal types (under coverage) also witnessed a considerable decline during Q1 2023 compared to Q1 2022. The number of mergers & acquisitions, private equity, and venture financing deals declined by 19.6%, 36.6%, and 37.8%, respectively.

*Comprising mergers & acquisitions, private equity, and venture financing deals