Global Deal Activity Declines 6.7% in 2024, but Key Markets Show Resilience

The global deal activity landscape in 2024 witnessed a 6.7% decline compared to the previous year, according to GlobalData. This decline can be attributed to various factors, including macroeconomic challenges, geopolitical issues, and uncertain market conditions. However, despite the overall downturn, certain key markets demonstrated remarkable resilience.

India and Japan were notable exceptions that bucked the trend and registered improvement in deal activity during the review period. India witnessed a 9.6% increase in deal volume during Q1-Q3 2024 compared to Q1-Q3 2023, while Japan saw a 16.2% increase in the same period. This resilience can be attributed to factors such as strategic foresight and adaptability by deal makers in these markets, despite challenging market conditions.

The overall 6.7% decline in global deal activity was influenced by several factors. The majority of the decline came from Q1 and Q2 2024, with the impact being relatively lesser in Q3 2024. The decline in Q3 2024 compared to Q3 2023 stood at just 1%, whereas the decline between Q1 2024 and Q1 2023 was much higher at around 20%. This indicates that the impact of the decline may be diminishing in recent months or quarters.



The decline in global deal activity was not uniform across regions. While North America experienced a 16% YoY decrease in deal volume, Europe, Asia-Pacific, Middle East and Africa, and South and Central America regions saw respective deal volume fall by 13.6%, 6.8%, 7.6%, and 22.3% YoY. This regional variation highlights the diverse impact of the decline on different markets.

The performance of different deal types (M&A, private equity, venture financing) varied significantly in 2024. According to GlobalData, the number of private equity deals increased by 26.1% compared to 2023, showcasing improvement in this deal type. On the other hand, M&A deals volume registered a marginal 0.4% growth, while the number of venture financing deals witnessed a significant decline of 22.3%. This indicates that while private equity and M&A deals remained relatively stable or grew slightly, venture financing deals experienced a substantial decrease in 2024.

In conclusion, the global deal activity decline of 6.7% in 2024 was influenced by various factors, with key markets such as India and Japan demonstrating resilience. The decline was not uniform across regions and deal types, highlighting the complex nature of the global deal activity landscape. As the market evolves, investors and deal makers must remain adaptable and strategic to navigate the challenges and opportunities that arise.