Deal activity in the first quarter of 2023 has dipped 26.5 per cent year-on-year across the Asia Pacific region, according to data and analytics firm GlobalData.
The decline was seen across all types of deals and major markets in key APAC markets. GlobalData suggests that it is an impact of global economic uncertainty.
Some markets were harder hit than others in terms of a decrease in deals volume – New Zealand (44.4 per cent), Indonesia (39.1 per cent), and Singapore (32.7 per cent) saw greater losses, while Australia (20.3 per cent) and Malaysia (9.1 per cent) was impacted less.
“Several markets within the APAC region, including China, India, Japan, and South Korea, experienced a decrease in deals volume during the quarter,” said Aurojyoti Bose, lead analyst at GlobalData.
“The downturn in deal activity can be attributed to a range of factors, including geopolitical tensions, ongoing pandemic concerns, and economic uncertainties.”
Based on GlobalData’s Financial Deals Database, only 3,549 deals were announced in APAC in Q1 2023 compared with the 4,831 deals made during Q1 2022.
Furthermore, the number of merger and acquisitions, private equity and venture financing deals in the region declined by 16.1 per cent, 30.8 per cent and 34.1 per cent respectively in Q1 2023 compared to last year.
However, the total deal volume rebounded by 21.3 per cent in March 2023 after registering a month-on-month of decline of 9.4 per cent in February 2023.
“Although the deals volume for the APAC region declined YoY in Q1 2023, March showcased some improvement after previous months of decline, which could be seen as a positive sign,” said Bose. “It will be interesting to see how the region performs in the coming months as the economic uncertainties persist and the pandemic situation evolves.”
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