A total of 4,796 deals (comprising mergers & acquisitions [M&A], private equity, and venture financing deals) were announced globally during October 2021, which is a decline of 5.7% over 5,088 deals announced during the previous month, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData's Financial Deals Database revealed that deal volume during October was less than the monthly average of Q1 and Q3 2021, but more when compared to the monthly average of Q2.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: "Deal activity rebounded in September, but the improvement in deal-making sentiments was short-lived, with October again reversing the growth trend. A surge in COVID-19 cases in some of the key markets, such as China and the UK, has impacted deal-making sentiments."
North America continued to account for the highest share of deal activity in October, followed by Asia-Pacific, Europe, the Middle East and Africa and South and Central America. However, deal volume for North America decreased by 5.9% from 2,153 deals in September to 2,025 deals in October. Akin to North America, the Asia-Pacific and Europe regions also witnessed decline in deal volume, while deal volume in the Middle East and Africa and South and Central America improved during October compared to the previous month.
Deal activity also declined in many of the key markets in October compared to the previous month, such as the US (by 5.5%), China (5.8%), Canada (9.7%), India (11.6%), Australia (5.6%) and Germany (22.1%). However, markets such as the UK, Japan, South Korea, Brazil and Italy witnessed improvement in deal activity.
Bose continues: "All the deal types (under coverage) have witnessed decline in deal volume in October compared to the previous month. The number of private equity, venture financing and M&A deals decreased by 21.1%, 8.5% and 0.1%, respectively."