The Strategist

Global M&A volume falls by 54% in Q3

10/05/2022 - 04:10

In the third quarter, global M&A activity decreased by 54% to $716.6 billion, according to Reuters, which used data from the analysis firm Dealogic.

Barrett Kuethen
Barrett Kuethen
Thus, the third consecutive quarter saw a fall in M&A activity, which has since intensified. Comparatively, the second quarter's transaction volume, which was $1 trillion, decreased by 25.5%. Since the start of the year, the overall amount of M&A activity has decreased 33%, totaling just under $3 trillion.

There are several causes for the abrupt fall in M&A volume. The activity in this sector continues to be negatively impacted by geopolitical and economic uncertainty. There is also an effect from the Federal Reserve's and other central banks' ongoing increases in key rates.

As a result, many businesses are reneging on earlier tentative agreements and are far more wary of signing new ones.

Deal volume decreased by 63% to $255.9 billion in the United States alone, 52% in the Asia-Pacific region, and 42% in Europe.

At that, a number of significant deals occurred during the quarter.

These included the $20 billion acquisition of design service Figma by software developer Adobe, the $14 billion purchase of rival REIT Store Capital by investment funds Oak Street and GIC, and the £9.5 billion ($10.5 billion) acquisition of software developer Aveva by power equipment manufacturer Schneider.