January 2021 saw a total of 4,064 deals announced globally, which is a decline of 24.8% over 5,401 deals announced during the previous month, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database showed that the deal volume during January 2021 remained below the monthly average of all four quarters of 2020.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
GlobalData lead analyst Aurojyoti Bose said: “Global deal activity showcased solid rebound during the initial months of H2 2020. However, the momentum could not be sustained in the remaining quarters with the new virus strain triggering a new wave of lockdowns, which enhanced market volatility and further dented deal-making sentiments. January’s decline is the fourth consecutive month of decline in deal activity.”
North America was the preferred deal-making destination, representing for more than 50% of the number of deals announced during January 2021, followed by Europe, Asia-Pacific, the Middle East and Africa, and South and Central America. Although North America was the preferred region, it saw a fall in deal volume by 4.9% from 2,298 in December 2020 to 2,185 in January 2021. Other regions too saw a decline in deal activity.
Most of the major markets also saw dip in deal volume in January 2021 compared with the previous month such as the US (by 3.3%), Canada (15%), Germany (21.3%), South Korea (24.2%), the UK (29.6%), India (30.9%) and China (39.1%). However, few countries such as France and Israel saw marginal improvement in deal activity.
Most of the deal types saw decline during January 2021 compared with the previous month. Deal activity fell for mergers and acquisitions (by 32.1%), licensing agreement (42.9%), venture financing (26.2%), private equity (25.6%), equity offerings (5.3%), and partnership deals (4.1%). Debt offerings deal volume, however, increased by 7.1%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
