NEW
YORK, July 25, 2023 /PRNewswire/ -- Deal volumes
remain anemic even though transactions rebounded in the second
quarter off a historically low base, according to S&P Global
Market Intelligence's newly released global Q2 2023 M&A and Equity Offerings Market Report.
The total value issued in global equity deals rose from the prior
quarter for the first time in more than a year, but the issuance
level was about 2x lower than the quarterly average during 2021.
The total global value of announced M&A also ticked up quarter
over quarter, but even with the growth, the second quarter was
reminiscent of the lows reached during the height of the COVID-19
pandemic.
The headwinds facing dealmaking for much of the last six
quarters are expected to continue plaguing transaction activity in
the second half of 2023. Geopolitical unrest, rising rates and
economic growth concerns are all giving companies pause before
pursuing transactions.
"The lack of equity issuance and M&A announcements since the
early part of 2022 has created some pent-up demand," said
Joe Mantone, lead author of the
report. "It's no surprise that we've seen some pockets of
quarter-over-quarter growth, but activity levels are far from
normal. Companies and investors should gain more clarity over the
direction of interest rates and the economy later this year and
once that occurs, markets could become more sanguine and supportive
of deal activity."
Key highlights from the quarterly report include:
- Second-quarter M&A transactions' total value was
$564.03 billion, a 42.4% decline from
an already low base a year earlier.
- The total value raised from global equity deals increased 28.8%
quarter over quarter to $77.39
billion in the second quarter but remains far below levels
reached in 2021 when the quarterly averaged raised topped
$260 billion.
- The total number of global M&A announcements in 2023
hit a monthly low in June with just 3,044
transactions.
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 Q2 Global M&A and Equity
Offerings Report, please contact press.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
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S&P Global Market Intelligence is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
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With every one of our offerings, we help many of the world's
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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 Market Intelligence