Global deal activity fell sharply year-on-year (YoY) in January 2026, underscoring a broad-based slowdown in risk appetite across markets. The broad-based contraction points to a structural reset in capital allocation priorities, as investors pivot from aggressive expansion to capital preservation, pricing discipline, and execution certainty amid persistent macro and geopolitical volatility, reveals GlobalData, a leading intelligence and productivity platform.
An analysis of GlobalData’s Financial Deals Database revealed that the total number of deals (mergers & acquisitions (M&A), private equity and venture financing) announced nosedived 28% YoY during January 2026.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The pullback signals that dealmakers continued to prioritize selectivity, stronger diligence, and clearer paths to value creation over volume-led strategies.”
The total number of M&A deals announced globally fell by 28% during January 2026 while venture financing and private equity deals volume were down by 23% and 57% YoY, respectively.
Deal activity in North America remained comparatively resilient with the region experiencing a decline of 17% YoY in volume while deal Europe, Asia-Pacific, Middle East and Africa and South and Central America witnessed respective deal volume fall by 33%, 36%, 35% and 55%.
The US, China, the UK, India, Canada, Germany, France and South Korea witnessed their deal volume decline by 15%, 17%, 19%, 24%, 36%, 46%, 29%, and 35%, respectively, YoY during January 2026.
Bose concludes: “While the current slowdown reflects cyclical caution, it is also laying the groundwork for a more rationalized deal environment. Strategic investors are reassessing portfolios for non-core divestitures. As financing markets stabilize, GlobalData expects a phased recovery led by high-quality assets in key sectors.”
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.
