Namely, in the Asia-Pacific (APAC) region a total of 1,342 deals, mergers and acquisitions (M&A), private equity, and venture capital financing (VC) deals were announced. On August 24 for the region covering deal-making for July 2022. The number represents a 12.4% decline compared to June of 2021, according to GlobalData; however, year-on-year (YoY) an increase of 9.6% of the deal volume was seen for the first half (H1) of 2022. Furthermore, the VC deals for July 2022 reversed the growth trend witnessed during the previous months. Aurojyoti Bose, Lead Analyst at GlobalData, commented on the data:
Cross-border versus domestic
Meanwhile, the nature of cross-border deals is changing to reflect geopolitical tensions as the number of outbound deals from APAC in H1 has fallen dramatically to 13% in 2022, while on average, it was closer to 23% over the past five years. Further, the number of deals done domestically increased to 77% for 2022, while on average, it was 71% over the past five years. In addition, the deal activity in key areas of APAC has seen an average drop of over 15%, except Malaysia and New Zealand, which were the only areas that saw an increase in deal volume by 4.5% and 33.3%, respectively. Bose added: Global macro trends are influencing deal-making across the world as it stands now, possibly complicating financing for existing and up-and-coming companies. This trend is especially worrisome when present in emerging economies; therefore, investors will do well to keep an eye on the number of deals to get a better understanding of where the global economy is headed to. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
