Even as the Asia-Pacific region saw a 3.6 per cent decline in overall deal activity during January-November 2024, India recorded an 11.7 per cent growth in deal volume compared to the same period in 2023.
The subdued deal activity in APAC mirrored a global slowdown, with China, the region’s largest market, experiencing a staggering 21.9 per cent drop. Other major APAC economies, including Singapore, Malaysia, and Hong Kong, reported similar downturns, according to research company GlobalData.
However, India, Japan, Australia, and South Korea bucked the trend, recording growth. The rise in M&A deals in India contributed to this performance, offsetting declines in private equity and venture financing deals across several regional markets.
- Also read: India’s deal activity bucks APAC trend with 11.9% growth
During the 11-month period, 13,111 deals (mergers & acquisitions, private equity, and venture financing) were announced in the region, marking a 3.6 per cent decline from the 13,601 deals reported in the same period last year.
“In line with the global trend, where all regions experienced subdued deal activity, the APAC region also registered a decline in deal volume. However, the decline was relatively smaller than in other regions,” said Aurojyoti Bose, Lead Analyst at GlobalData.
Though China, the biggest market in the region, suffered a huge double-digit decline, other markets in the region showed improvement, he said.
Singapore, Malaysia, Hong Kong, and Indonesia also witnessed a decline in APAC markets. These countries experienced a fall of 15 per cent, 11.4 per cent, 11.3 per cent, and 35.4 per cent in deal volume, respectively, during the period.
- Also read: ‘PE deals will go up driven by money, M&As by need to consolidate’
Global deal scenario
Meanwhile, global deal activity experienced a significant slowdown during the period, with a total of 45,921 deals announced, marking an 8.7 per cent decrease compared to the same period in 2023.
This decline was observed across all deal types, including mergers and acquisitions (M&A), private equity, and venture financing.
VC deals drag
While all deal types saw a decrease, the most substantial drop was seen in venture financing deals, which plummeted by 18.7 per cent year-on-year. This decline was partially offset by smaller decreases in M&A and private equity deals, which fell by 2.8 per cent and 3 per cent, respectively. The overall decline in deal activity was primarily attributed to this significant fall in venture financing.
North America suffers most
The decline in deal activity was felt across all regions, with North America experiencing the most significant drop at 12.5 per cent. As the largest market, accounting for nearly 40 per cent of global deal volume, North America’s downturn had a substantial impact on the overall global figures. Other regions, including Europe, Asia-Pacific, Middle East & Africa, and South & Central America, also saw decreases in deal volume.