.jpg)
The global deal landscape (mergers & acquisitions (M&A), private equity and venture financing deals) declined 6% year-on-year (YoY) during the first quarter (Q1) of 2025, as economic uncertainty weighed on investor confidence. However, markets like India and Japan stood out by defying the global trend, signaling that select regions continue to attract deal-makers despite broader headwinds, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that all the deal types under coverage registered YoY decline in volume during Q1 2025. All the regions also witnessed a fall in deal activity while the trend across different markets within the regions remained a mixed bag, with some countries experiencing decline while some others bucking the global and regional trend.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While the overall downturn is indicative of a cautious approach among the investors and corporations alike, the resilience shown by some markets offers a glimmer of hope.”
M&A deals saw around 5% decline in volume during Q1 2025 compared to Q1 2024. Similarly, private equity and venture financing deals also contracted, indicating a tightening of capital flows and a more selective investment approach. The number of private equity and venture financing deals registered a YoY decrease of around 2% and 8%, respectively, in Q1 2025.
North America remains the largest market for deal activity, although it too has witnessed an approximate 4% decline in deal volume. The US, a key driver of global deal-making, has seen a similar trend, with around 3% drop in activity.
Similarly, the Asia-Pacific region has experienced a contraction, with deal volume falling by around 4%. Notably, China has faced a sharp decline in M&A activity, reflecting the ongoing regulatory challenges and economic headwinds. However, India and Japan bucked the trend, showcasing an increase in deal volume.
Europe also faced challenges, with deal volume decreasing by approximately 9%. The UK, which is the top European market, has seen a double-digit decline in deal volume. Nevertheless, markets such as Germany and France continue to exhibit resilience, albeit with modest declines.
Middle East and Africa and South and Central America regions also experienced respective deal volume fall by 8.3% and 15.2%, respectively, during Q1 2025 compared to Q1 2024.
Bose concludes: “While the global deal landscape is facing headwinds, it is essential to recognize that pockets of growth still exist. Markets like India and Japan are defying the broader trend, indicating that strategic investments and innovation can thrive even in challenging times.”
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.
