The total value of global mergers and acquisitions (M&A) deals dropped significantly in 2022 compared to the previous fiscal year, due to challenging economic conditions.

2022 saw a steep decline of 29% in total deal value to $2.8 trillion from the $3.9 trillion reported in 2021, according to a latest M&A report from GlobalData, a leading data and analytics company.

GlobalData’s latest report ‘Mergers and Acquisitions Deals in 2022 by Top Themes and Industries,’ reveals that total deals count also fell by 6%, from 39,170 in 2021 to 36,704 in 2022. The market slowdown in 2022 also impacted the number of mega deals worth over $1 billion each. A total of 497 mega deals were completed, compared to the 835 mega deals reported in 2021.

Shri Charan Padala, Principal Analyst, Thematic Intelligence at GlobalData, comments: “A combination of factors including higher debt costs, declining equity markets, and economic uncertainty are driving the slowdown in the M&A market. When the dot-com bubble burst, M&A volumes fell by 50%. The declines to date have not been so steep, but the outlook remains uncertain and deal activity is likely to remain subdued at least in the first half of 2023.”