Plunge in deal activity with decrease of 19.7%, says GlobalData

A total of 837 deals were announced globally during the week ended March 29, 2020, which is a decrease of 19.7% over the 1,042 deals announced during the previous week, according to GlobalData’s deals database.

The subdued activity has been continuing over the last few weeks and could be attributed to volatile market conditions since the outbreak of the coronavirus (COVID-19).

Deal activity plunged in most of the key markets during the week ended March 29, 2020 compared to the previous week. While the US witnessed a decline in deal volume by 21.5%, the UK and China witnessed deal volumes declining by 32% and 4.4%, respectively.

Sectors such as travel and tourism also witnessed a decline in deal activity, while the healthcare sector (including pharmaceuticals and medical equipment) and the retail sector witnessed an improvement in deal activity.

Most key deal types witnessed a decline in volume. Mergers and acquisitions (M&A) deal volume declined by 36.4%, and the number of private equity, venture financing and partnerships deals dropped by 52.7%, 22.5% and 7.6%, respectively. However, the number of licensing agreements went up from by ten in the previous week to 25.

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