The global deal landscape has been experiencing a downturn in 2025 with the first five months of the year seeing a decline in deal volume compared to the same period in the previous year. The total number of deals (mergers & acquisitions (M&A), private equity and venture financing) announced globally year-on-year (YoY) decreased by around 4% during January-May 2025. This dip is attributed to cautious investor sentiment and economic uncertainty, according to GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Factors such as geopolitical tensions, inflationary pressures, and regulatory scrutiny are forcing deal-makers to adopt a wait-and-watch approach before committing to significant transactions.”
An analysis of GlobalData’s Deals Database revealed that M&A continue to dominate the deal-making arena, yet they too have experienced a contraction. During January-May 2025, the total number of M&A deals announced globally registered a YoY fall of around 3%, suggesting that while companies remain active in pursuing strategic growth through acquisitions, caution is prevailing in the face of economic uncertainties.
Private equity transactions have also declined approximately 6%. Meanwhile, venture financing has seen a relatively more pronounced decline of around 7%. The downturn in venture financing is particularly concerning as it suggests a tightening of capital availability for startups and emerging companies. Investors seem to be becoming increasingly selective, prioritizing established businesses over early-stage ventures.
Deal activity has softened across all regions but not all are experiencing the same level of downturn. North America, which has historically been a leader in deal-making, experienced a decrease of around 4%. This decline is primarily driven by reduced activity in the US.
Conversely, Asia-Pacific has seen decline, albeit at a much lower rate, indicating a broader global trend. The total number of deals announced in the region fell by around 2% YoY during January-May 2025. Europe, Middle East and Africa, South and Central America also saw respective deal volume fall by around 6%, 9% and 12%.
Meanwhile, the deal-making trend is not uniform among different countries with the downturn very evident in some markets whereas some markets showcased growth. Top markets such as the US, China and the UK witnessed YoY decline in deal volume by around 4%, 7% and 8%, respectively, during January-May 2025.
On the other hand, India and Japan have emerged as bright spots with YoY increase in deal volume of around 7% and 23%, respectively. The deal volume of other markets such as France, Finland, Hong Kong, Belgium and Saudi Arabia also improved.
Bose concludes: “While the overall decline in deal activity raises concerns, it is essential to recognize the regional disparities and market-specific dynamics at play as the emergence of some resilient markets offers a glimmer of hope.”
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.
