Apac deal activity falls 25% from January to May: GlobalData

THE number of deals conducted in the Asia-Pacific (Apac) region fell 25 per cent year on year from January to May 2023, with 5,707 deals completed across mergers and acquisitions (M&A), private equity and venture financing deals.

This is down from the 7,604 deals announced from January to May 2022, based on GlobalData figures published on Thursday (Jun 15).

The data and analytics company said the decline was in line with the global trend of economic uncertainties impacting deal activity.

Aurojyoti Bose, lead analyst at GlobalData, attributed the fall in deals to several economic headwinds of late, including geopolitical tensions, inflation and recession fears.

Of the three types of deals measured, venture financing deals fell the most – by 32 per cent, followed by M&A deals, down 16 per cent. The volume of private equity deals slipped 15 per cent in the same period year on year.

By geography, deal volume fell the most in Indonesia, New Zealand and South Korea. The number of deals in Indonesia fell 43 per cent from January to May 2023, compared with 2022, while deals in New Zealand and South Korea both fell 40 per cent year on year.

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Deal activity in Singapore waned 29 per cent in the same period.

“Deal sentiment across the word is of cautious tone, and Apac is not an exception, as (the) bearish market environment is weighing on investors’ appetite for dealmaking,” said Bose.

“GlobalData expects the prevailing market volatility and geopolitical tensions to force prospective investors to carry out more rigorous due diligence, in their hunt for deals.”