Global deal activity takes dive in August

By Neil Griffiths
 — 1 minute read

A drop in global deal activity in August has largely been attributed to rising COVID-19 cases in Europe.

According to data and analytics company GlobalData, deals such as M&A, private equity and venture financing deals, dropped by 3.4 per cent from July to a total of 4,826.

North America accounted for the highest share of deal activity in August – a 2.6 per cent increase from 2,145 to 2,201 deals – activity also spiked in China (26 per cent), Japan (13.7 per cent), Brazil (42 per cent), and Singapore (15 per cent).


However, European markets including UK, Germany and France all took hits.

“While it’s been a rough couple of months for deal activity, not all regions are experiencing the same subdued activity,” GlobalData lead analyst, Aurojyoti Bose, said.

“As in the case of August, the decline was mainly driven by Europe, which witnessed a 25 per cent decline in deal volume compared to July, while all other regions experienced growth in deal activity.

“This could be attributed to concerns around a surge in new cases in some of the European nations, with the World Health Organization (WHO) also expressing concerns and anticipating around 236,000 COVID-19 deaths in the region by December.

“Some of the deal types (under coverage) also witnessed decline in deal volume in August compared to the previous month. The number of private equity and M&A deals declined by 15.7 per cent, and 6.5 per cent, respectively, while venture financing deals volume increased by 2.6 per cent in August compared to the previous month.”


Global deal activity takes dive in August
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