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APAC Deal Activity, involving Private Equity and VC Investments, Experiences Significant Decline – Report

Decline in Deal Activities in Asia-Pacific Region: GlobalData Analysis

According to data and analytics company GlobalData, a total of 9,527 deals, including mergers & acquisitions (M&A), private equity, and venture financing, were announced in the Asia-Pacific (APAC) region between January and August 2023. This represents a decline of 21.5% compared to the same period in 2022, when 12,142 deals were announced.

GlobalData’s analysis of its Financial Deals Database indicates that all types of deals experienced a decline in volume compared to the previous year. M&A deals saw a decrease of 13.1%, while the volume of private equity and venture financing deals fell by 15.5% and 28.8% respectively.

Lead Analyst at GlobalData, Aurojyoti Bose, explains that the declining deal activity can be attributed to geopolitical tensions, economic uncertainties, and recession fears that have affected the global market sentiment. These factors have similarly impacted the APAC region, leading to a significant setback in deal-making during the first eight months of 2023.

China and India, the top two markets in the APAC region in terms of deal volume, experienced double-digit declines of 16.1% and 30.2% respectively compared to the previous year. Japan, Australia, South Korea, Singapore, Indonesia, Hong Kong, and New Zealand also witnessed declines ranging from 16.4% to 40.4%.

Bose emphasizes that in the current challenging global landscape, characterized by geopolitical tensions and economic uncertainties, businesses and investors in the Asia-Pacific region need resilience, adaptability, and strategic navigation to navigate these turbulent waters.

GlobalData’s unique data, expert analysis, and innovative solutions have reportedly benefited over 4,000 of the world’s “largest” companies, including a significant portion of the FTSE 100 and Fortune 100 companies. Their mission is to assist clients across various industries, such as healthcare, consumer, retail, financial, technology, and professional services, in decoding the future to achieve success and innovation.

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