APAC Deal Activity Dips Slightly Amid Global Slowdown
Despite a global trend of slowing deal activity, Asia-Pacific (APAC) experienced a comparatively modest decline in mergers and acquisitions (M&A), private equity, and venture financing deals during the first seven months of 2024.
According to GlobalData, the publishers of RBI, a total of 7,966 deals were announced in the APAC region between January and July 2024. This represents a 9.9% year-on-year (YoY) decrease compared to the 8,840 deals announced during the same period in 2023.
"The subdued deal activity has been a global phenomenon, with all regions, including APAC, witnessing a decline in deal volume," commented Aurojyoti Bose, Lead Analyst at GlobalData. "However, the decline experienced in the APAC region was relatively less pronounced compared to other regions."
While APAC was the only region to register a single-digit decline in deal volume, other regions experienced more significant drops:
North America: 19.6%
Europe: 16.9%
Middle East and Africa: 11.7%
South and Central America: 27.7%
Despite the overall regional decline, some APAC markets bucked the trend. "While most of the APAC markets witnessed a decline in deal volume, the impact was negated to some extent by improvements experienced in markets such as India, Japan and Thailand," Bose added.
Notable market performance in the first seven months of 2024:
Declining deal volume: China (-21.1%), Australia (-2.6%), South Korea (-1.3%), Singapore (-23.7%), Malaysia (-14.5%), Hong Kong (-17.2%), and Indonesia (-32.2%).
Increasing deal volume: India (+2.4%), Japan (+5.7%), and Thailand (+8.5%).
Analysis of GlobalData's Deals Database revealed that all deal types experienced a decline during the review period:
M&A deals: -8.3% YoY
Private equity deals: -25.4% YoY
Venture financing deals: -10.9% YoY
This data suggests a cautious approach to deal-making across the region, reflecting broader economic uncertainties and market volatility. While APAC continues to be a significant driver of global deal activity, the ongoing decline highlights the need for a nuanced understanding of the regional landscape, particularly given the diverse performance of individual markets within the region.
