The global mergers and acquisitions (M&A) landscape witnessed an 8% decline in deal value from $515 billion in Q3 2022 to $473 billion in Q3 2023. The total M&A deal volume also fell by 21% from 8,997 to 7,083 during the period. The economic deceleration, attributed to rising inflation and interest rates, influenced this trend, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Merger and Acquisition Deals of Top Themes by Industries in Q3 2023 – Thematic Intelligence,” reveals that the market slowdown in Q3 2023 also impacted the number of mega deals worth over $1 billion. A total of 98 mega deals were completed in the quarter, which was a decline of 15% compared to the same quarter last year.

Priya Toppo, Analyst, Thematic Intelligence at GlobalData, comments: “North America continued to lead the global M&A deal activity, accounting for 2,842 deals worth $242 billion, during Q3 2023.”

Nevertheless, except for China, a decline in M&A deal activity was evident across all regions, both in year-on-year and quarter-on-quarter basis. This reflects the prevailing corporate wariness towards M&A endeavors due to the elevated debt financing expenses and a muted economic outlook in the majority of regions.

ESG was the most prominent theme driving the M&A activity during Q3 2023. It was followed by themes like emerging economies, AI, supply chain disruption, and big data.

Toppo concludes: “The outlook for global M&A activity in the last quarter of 2023 remains relatively sluggish, with likely further increases in interest rates and the prospects of mild recessions across several key markets. However, the M&A market is likely to rebound as we head into 2024, as acquisitions remain a key element of corporate strategy.”