LSEG: Global mergers and acquisitions at the lowest level in the last ten years

Global deal-making fell to a ten-year low in 2023, with mergers and acquisitions (M&A) activity down 17% from 2022, according to LSEG Data & Analytics figures cited by investmentexecutive. com.

While M&A activity rose 23% in the fourth quarter of 2023 from the previous quarter, the full year ended at the weakest level since 2013, coming in at $2.89 trillion, according to the source. LSEG Data & Analytics shows that more than 55,200 M&A deals were completed worldwide in 2023, down 6% from 2022. Most of the decline in deal value was driven by lower prices.

LSEG reported that there were 32 deals valued at more than $10 billion ("mega-deals") last year, totaling $646.6 billion, down 13% from the previous year. Smaller businesses - valued at less than $500 million - fell 26% year-on-year to $792.8 billion.

LSEG also said the value of private equity-backed buyouts fell 30% in 2023 to the lowest level since 2019: $566 billion - representing about 20% of global deal activity, down from 23% in 2022.

• European M&A down 28%

By region, European mergers and acquisitions fell by 28% last year, and transactions in the Asia Pacific region - by 26%. US mergers and acquisitions fell just 5 percent year-on-year, LSEG said.

The energy sector led global M&A in 2023 with $502.3 billion in deals, up 11% from 2022. The sector accounted for 17% of global deal activity, outpacing industrials, technology and health care sectors, which each accounted for 13% of total M&A.

The ranking of the top three global advisory firms in mergers and acquisitions remained unchanged: Goldman Sachs leads with a market share of 29.7%, the American giant being followed by Morgan Stanley (23.3%) and JP Morgan Chase & Co. (22%). Citigroup surpassed BofA Securities in the field, with the two entities completing the top five spots worldwide.