In 2023, the global M&A market will reach a transaction value of 2900 billion USD, down 17% compared to 2022. This is the first time since the global financial crisis of 2008 – 2009 that the world M&A market has witnessed a decrease. more than 10% for two consecutive years.
According to data from the operator of the London Stock Exchange Group (LSEG), the global corporate mergers and acquisitions (M&A) market reached a transaction value of 2.9 trillion USD this year. , down 17% compared to 2022. This is the first time since the 2008 – 2009 global financial crisis that the world M&A market has witnessed a decrease of more than 10% for two consecutive years.
Europe is the market that has seen the sharpest decline in M&A this year, with a decrease of 28% compared to last year. The Asia-Pacific region saw a decrease of 25%, while M&A activity in the US decreased by 6%.
M&A negotiators face many challenges this year. Just as corporate mergers and acquisitions activities are on the decline after a period of strong growth before the Covid-19 pandemic, authorities are increasing supervision, and interest rates are increasing globally. All of these factors weaken M&A activities.
Two major deals in the energy sector in the US, by two oil giants ExxonMobil and Chevron, worth more than 50 billion USD each, have helped increase the total value of global M&A in the final months of the US. year. In the fourth quarter, transaction value increased by 28% compared to the third quarter.
This year’s decline in the mergers and acquisitions market has caused a loss in consulting fee revenue for investment banks, with a recorded decrease of 8% compared to last year, to $105 billion. Among them, fees from M&A deals decreased the most, with a decrease of 26%, to 29 billion USD – the lowest since 2016.
American bank Goldman Sachs continues to hold the No. 1 position globally in the field of M&A consulting, mainly due to its dominant position in the US market. Two other American banks, Morgan Stanley and JPMorgan Chase, ranked second and third globally, leading the Asian and European markets, respectively.
