Dealmaking activity severely hit in September quarter; down 66% by value: Grant Thornton

Corporate deals, including mergers and acquisitions and venture funding, were down 66 per cent by value to USD 10.22 billion in the September quarter, a report said on Tuesday.

By volumes, the deals were down by 25 per cent to 450 transactions during the quarter, as against 600 in the year-ago period and 317 in 2020, the report by Grant Thornton Bharat, a consultancy firm, said.

Its partner Shanthi Vijetha said deal activity was impacted by the pandemic and the Russia-Ukraine conflict, and hoped for an upswing in activity in the time ahead.

"A shift in policy focus towards infrastructure, manufacturing, land, labour reforms, financial services sector could cumulatively contribute to an upswing in the private sector," Vijetha said.

The merger and acquisition side reported a 62 per cent fall in value to USD 4.864 billion during the quarter, while the same was down 30 per cent by volumes to 113 transactions, it said.

The cross-border segment seemed to be the worst affected on the M&A front with values down to USD 596 million as against USD 9.268 billion in the year-ago period, and USD 9.427 billion in 2020.

Domestic M&A activity showed an increase at USD 4.268 billion as against USD 3.559 billion in the year-ago period.

Private equity deals were down by more than two-thirds to USD 5.356 billion during the September quarter as against USD 17.061 billion earlier.

When compared on a year-to-date basis, the overall deal activity was positive with a 10 per cent increase by volumes at 1,599 transactions, and 57 per cent higher by values at USD 114 billion, it said.