The total value of global mergers and acquisitions (M&A) deals declined sharply by 44% to $413 billion in Q1 2023 from $744 billion in Q1 2022, as a spike in inflation and rising interest rates led to concerns over a global economic slowdown, according to the latest M&A report from GlobalData, a leading data and analytics company.

GlobalData’s latest report ‘Mergers and Acquisitions Deals by Top Themes and Industries in Q1 2023 – Thematic Intelligence,’ reveals that the total M&A deal count also fell by 23% from 10,003 in Q1 2022 to 7,738 M&A deals in Q1 2023. The market slowdown in Q1 2023 also impacted the number of mega deals worth over $1 billion each. A total of 79 mega deals were completed in the quarter, which was a decline of 45% compared to the same quarter last year.

Priya Toppo, Analyst, Thematic Intelligence at GlobalData, comments: “An ongoing trend is the dominance of North America in M&A deal activity. In Q1 2023, it accounted for 3,209 deals worth $208 billion, making it the most active region in the global M&A market.”

However, the global downward trend in M&A deal activity was observed across all regions on both a year-on-year and quarter-on-quarter basis. This indicates that the investors are more cautious towards M&A activity.

Toppo concludes: “Given the slump in global M&A deal activity in Q1 2023, the outlook for M&A over the rest of 2023 remains relatively subdued, with likely further increases in interest rates and the prospects of mild recessions in several key markets. However, the M&A market will likely rebound as we head into 2024, as acquisitions remain a key element of corporate strategy.”