BENGALURU: With global macro concerns and higher interest rates, the global deal-making has witnessed high levels of volatility and India is also experiencing a downturn in deal activity.
India Inc recorded 106 transactions valued at $4.6 billion in May 2023, which is a decline of 45% in volumes and 87% in values compared to May 2022.
This significant decline is owing to the absence of big-ticket transactions as May 2022 saw four multi-billion-dollar deals totalling $31.5 billion, according to Grant Thornton Bharat’s Dealtracker May 2023 report.
“While there has been an overall decline in deal activity compared to past years, both mergers and acquisitions (M&A) and private equity (PE) volumes have witnessed a gradual m-o-m increase since February 2023, signifying the growing potential and investment interest,” said Shanthi Vijetha, Partner- Growth at Grant Thornton Bharat.
Domestic activity continued to dominate the M&A activity, however, the month witnessed subdued cross-border activity owing to global macroeconomic challenges, concerns of a potential recession and uncertainty surrounding company valuations.
Domestic volumes reached a three-year low with 20 deals, while cross-border activity hit its lowest monthly volumes and values to date, the report said. As far as start-ups are concerned, the sector continued to dominate the deal activity, accounting for 55% of total PE deal volumes.