Cautious investor sentiment has weighed heavily on the global deal landscape, with mergers and acquisitions, private equity, and venture financing activities collectively declining by approximately 5% year-on-year (YoY) during the first four months of 2025. Geopolitical uncertainty and macroeconomic headwinds have prompted dealmakers to adopt a more selective, risk-averse approach, leading to a slowdown across major markets, reveals GlobalData, a leading data and analytics company.
The contraction in deal volume during the first four months of 2025 can be primarily attributed to 4.3% reduction in M&A activity, which accounts for more than half of the combined total of all deal types.
An analysis of GlobalData’s Deals Database revealed that private equity and venture financing deals also faced contractions, indicating a cautious approach from investors amid uncertain market conditions.
The number of private equity deals announced during the first four months of 2025 showcased a decline of 4.5% compared to January-April 2024 while venture financing deals volume were down by 6.8% YoY.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The global decline can be attributed to several factors, including geopolitical tensions and macroeconomic challenges that have made dealmakers risk-averse. As companies reassess their growth strategies, many seem to have opted for organic growth over acquisitions, leading to a slowdown in M&A activity. Additionally, investors are becoming selective and cautious while making investment decisions.”
North America continues to dominate the global deal activity. However, it has not been immune to the slowdown, recording a YoY decline of around 4%. The US, historically a powerhouse in deal-making, reported a decrease in deal volume, reflecting a broader trend of caution among the dealmakers. Similarly, Europe, Asia-Pacific, Middle East and Africa, and South and Central America also experienced declines of around 7%, 3%, 11% and 13%, respectively.
Bose adds: “Despite the overall downturn, certain markets have shown resilience suggesting that these may serve as a beacon of opportunity amid the global decline.”
India, for instance, recorded a growth of around 13% in deal volume. Japan also demonstrated a positive trend with a growth rate of approximately 25%. Meanwhile, the US, the UK and China witnessed their respective deal volume fall by around 4%, 7% and 15%, respectively, during January-April 2025.
Bose concludes: “The global deal landscape is undergoing a significant transformation as we move further into 2025. However, it is essential to recognize that certain markets are still thriving, reflecting a shift in focus towards nations that offer growth potential despite broader economic challenges."
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
