Global deal activity declined during the first five months of 2026, as dealmakers remained cautious. The total number of deals (mergers & acquisitions (M&A), private equity and venture capital (VC)) announced globally fell by around 7% during January-May 2026 compared to the same period in the previous year, according to GlobalData, a leading intelligence and productivity platform.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The decline reflects a more cautious environment for corporates and investors. The pullback was broad-based across deal types, regions and most countries, as buyers continued to weigh heightened execution risk. While overall sentiment remained subdued, select markets still showcased resilience.”
An analysis of GlobalData’s Financial Deals Database reveals that the total number of M&A deals announced globally contracted by 10% during January-May 2026 compared to the same period in the previous year. Meanwhile, private equity deal volume was down by 13% year-on-year (YoY) during the same period, whereas VC funding activity proved comparatively resilient, slipping only 3% YoY.
Regional trends show relative stability in North America, where deal volume was down just 1% YoY during January-May 2026, pointing to a steadier pipeline supported by deeper capital markets and sustained activity.
By contrast, the total number of deals announced in the Asia-Pacific, Europe, Middle East and Africa, and South and Central America regions declined by 12%, 11%, 6%, and 22%, respectively, during January-May 2026 compared to January-May 2025, highlighting relatively higher volatility and sensitivity to risk sentiment in these regions.
Deal activity across different markets remained a mixed bag, with notable divergences. The US, the top global market, held steady, with deal volume mostly remaining at the same level during the five-month period. China stood out with an 11% YoY increase in the number of deals, indicating improving momentum and a conducive deal-making. India and Israel were also among the markets that registered improvement in deal activity during the period.
Elsewhere, several markets recorded a decline, including the UK and Canada (both down 5%) while some markets also registered much steeper declines. For instance, the total number of deals announced in Japan, Germany, Australia, France, South Korea, Brazil, and the UAE saw YoY declines of 41%, 13%, 20%, 15%, 23%, 34% and 26%, respectively.
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.
