Faltering merger and acquisitions activity is affecting markets all over the world, deal volumes falling back to 2005 levels.
High Growth Markets International Acquisition Tracker (formerly Emerging Markets International Acquisition Tracker) shows the volume of cross-border corporate acquisitions involving high growth markets has dropped to its lowest level since 2005, with 979 deals in the past six months compared with 936 in H2 2005.
The volume of D2H (developed to high growth) deals was at its lowest since 2005 (barring the trough of 2009), a sign that global deals markets are continuing to struggle in the face of declining corporate confidence.
Similarly, H2D (high growth to developed) deals were down to 2006 levels and the proportion of H2H (high growth to high growth) deals was also at its lowest since 2006 (12 percent of all cross-border deals involving high growth markets).
David Simpson, Global Head of M&A, commented: “Our latest figures show that the M&A slowdown is not only a mature market issue - it is affecting the high growth markets, too. China and Japan are very active in outbound deals and Brazil is a favoured acquisition target but these represent bright spots in an increasingly difficult environment.”