M&A Hit Multi-Year Low, S&P Global Market Intelligence Quarterly Report Finds

Rhea-AI Summary

The mergers & acquisitions (M&A) market declined in the third quarter of 2023, with a decrease in announced deals by 17.3% from the previous quarter and 28.3% from the previous year. Geopolitical unrest and economic uncertainty are creating challenges for future dealmaking. Global equity issuance has fallen in six of the last seven quarters, and the total value of global IPOs dropped by 9.1% quarter over quarter and 25.8% year over year. The number of global M&A announcements fell below 10,000 for the first time since the pandemic.

Positive

• Global equity issuance has fallen quarter over quarter in six of the last seven quarters.
• The total value of global IPOs fell 9.1% quarter over quarter and plummeted 25.8% year over year to $33.80 billion.
• The third quarter marked the first time since the pandemic that the number of global M&A announcements dropped below 10,000.

Negative

• None.

NEW YORK, Oct. 26, 2023 /PRNewswire/ -- The mergers & acquisitions (M&A) market retrenched to even more depressed levels in the third quarter of 2023, according to S&P Global Market Intelligence's newly released quarterly global Q3 2023 M&A and Equity Offerings Market Report. During the period, only 8,775 deals were announced around the world, down 17.3% from the prior quarter and 28.3% from year-ago levels. Equity issuance activity received some fanfare in the third quarter due to a handful of initial public offerings, but the momentum from those deals has been slowed by the lackluster public market debuts from companies involved in the more notable IPOs.

The prospects for dealmaking going forward are challenged by economic uncertainty and the likelihood that interest rates will stay higher for longer. Also, geopolitical unrest is growing with the latest Israel-Hamas war, and that creates yet another headwind for those considering transactions.

"Heightened geopolitical concerns add to an already uncertain macroeconomic outlook, and uncertainty is never good for dealmaking," said Joe Mantone, lead author of the report. "The Federal Reserve is nearing the end of its rate-hiking cycle and gaining clarity on peak rates would be positive for transaction activity, but if rates remain elevated, that will keep financing costs up and make some deals harder to pencil out."

Key highlights from the quarterly report include:

• Global equity issuance has fallen quarter over quarter in six of the last seven quarters.
• The total value of global IPOs fell 9.1% quarter over quarter and plummeted 25.8% year over year to $33.80 billion.
• The third quarter marked the first time since the pandemic that the number of global M&A announcements dropped below 10,000.

The quarterly report provides an overview of global M&A and equity issuance trends, offering insights into the sectors and geographies that are seeing the most activity. It also focuses on deals with the highest valuations and strategies larger players pursue that underscore trends occurring throughout an industry. S&P Global Market Intelligence has produced the quarterly, global M&A and equity offering report since the first quarter of 2018.

To request a copy of the 2023 Q3 Global M&A and Equity Offerings Report, please contact pressinquiries.mi@spglobal.com.

S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.

About S&P Global Market Intelligence 
At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

Media Contact
Amanda Oey
S&P Global Market Intelligence 
+1 212-438-1904 
amanda.oey@spglobal.com

 

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SOURCE S&P Global

FAQ

What is the trend in global equity issuance?

Global equity issuance has fallen quarter over quarter in six of the last seven quarters.

What happened to the value of global IPOs in the third quarter?

The total value of global IPOs fell 9.1% quarter over quarter and 25.8% year over year to $33.80 billion.

How did the number of global M&A announcements change in the third quarter?

The third quarter marked the first time since the pandemic that the number of global M&A announcements dropped below 10,000.