February recorded the second-lowest transaction volume and lowest value since 2014. (representation)
Mumbai:
A deepening start-up funding winter and a drying up of IPOs marked the deal boom, as the total value of deals fell 60 percent to $1.8 billion in February, the analysis showed.
According to Grant Thornton, the industry saw just 89 deals worth $1.8 billion in February, down 60 percent in value from last year, and down 54 percent in volume as investors continued to exercise caution. in the context of macroeconomic uncertainty.
This is the second lowest deal volume and lowest value since 2014.
Among total deals, M&A saw a significant downward trend compared to February 2022, down 48% in volume to 24 deals and 47% in value hours to $755 million.
The IPO segment was the worst with one issue of $8 million compared to three issues that raised $1 billion a year ago.
While M&A was dominated by cross-border deals, particularly outbound transactions behind one big-ticket transaction of $578 million, volume continued to be dominated by domestic consolidations, accounting for 67 percent of transactions.
The Pharma, Healthcare & Biotechnology and IT & ITeS sectors accounted for 17 and 13 percent of the deals respectively, followed by the Automotive sector thanks to Motherson International’s $578 million acquisition of Autosystemtechnik.
This deal alone accounted for 77 percent of the total value of M&A, making it the fifth largest deal in the sector over the past 12 years.
Private equity investments continued to decline in both value and volume, recording only 65 deals worth US$1 billion, the lowest monthly deal volume and value since August 2020.
(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)
