GlobalData: Global deal activity down by 20.2% y/y in Q1’24

Global deal activity has taken a hit in the first quarter of 2024, with over 11,700 deals, including mergers and acquisitions, private equity, and venture financing deals, being announced worldwide. This marks a significant 20.2% year-on-year decline, according to the latest quarterly database released by GlobalData. Aurojyoti Bose, Lead Analyst at GlobalData, recently appeared on CNBC Africa to delve into the report and shed light on the drivers behind the current market sentiments. The decline in deal activity can be attributed to several factors, including volatile market conditions, macroeconomic challenges, and ongoing tensions. In comparison to the first quarter of 2023, which saw the announcement of approximately 15,000 deals, the drop in deal activity in Q1 2024 is evident across all types of deals. Private equity deals witnessed a 19% decline, venture financing deals fell by 29%, and merger and acquisition deals experienced a 14% decrease. Notably, all regions globally reported a downturn in deal volume, with key markets in North America, Europe, Asia-Pacific (APAC), the Middle East and Africa, and South and Central America registering declines ranging from 12% to 40%. Countries like the United States, China, the United Kingdom, Germany, France, Singapore, and Israel also displayed double-digit declines in deal activity. Looking at the Middle East and Africa, there is a notable shift in risk appetite and market dynamics that may influence deal volumes in the near term. Despite the current subdued deal activity being a global trend, the Middle East and Africa have not been immune to this downturn. Factors such as regional conflicts and prevailing uncertainties pose challenges for deal-making sentiments in these regions. Key markets within the Middle East and Africa, including Israel, South Africa, Nigeria, and Kenya, witnessed significant double-digit declines in deal volume during the first quarter of 2024. While it is early in the year to make projections for the coming quarters, monitoring how these trends unfold will be crucial in understanding the future direction of deal activity in these regions.