India, Japan and UAE defy global deal downturn: GlobalData
India, Japan and the UAE bucked the trend and showcased improvement in deal activity during the review period.
M&A deal volume has seen a year-on-year (YoY) decrease of about 9% during January-February 2025, signaling a cautious approach from businesses. (Image: Freepik)
The global deal landscape has slowed during the first two months of 2025, with overall deal volume dropping 9% compared to the same period last year. Europe has seen a sharp contraction, while India, Japan and the UAE have shown resilience despite the broader downturn, reveals GlobalData, a leading data and analytics company.
Aurojyoti Bose, Lead Analyst at GlobalData, comments, “This decline is indicative of a challenging environment, influenced by factors such as geopolitical tensions, inflationary pressures and macroeconomic conditions that have dampened deal-making sentiments.”
An analysis of GlobalData’s Deals Database revealed that all the deal types under the coverage, mergers & acquisitions (M&A), private equity and venture financing, registered decline in volume during January-February 2025 compared to January-February 2024.
M&A deal volume has seen a year-on-year (YoY) decrease of about 9% during January-February 2025, signaling a cautious approach from businesses that may be reevaluating their growth strategies amid the uncertainty.
Similarly, the number of private equity deals have contracted by about 3%, suggesting that investors are becoming more selective in their investments, possibly prioritizing quality over quantity in the current market conditions.
Venture financing deals have also taken a hit, with the YoY decline in volume pegged at about 9%, reflecting a tightening of capital availability for startups and emerging companies, which often rely on such funding to fuel innovation and growth.
Bose adds, “Even though the intensity varied widely but all the regions experienced subdued deal activity during the review period. Meanwhile, the trend remained a mixed bag among different countries with some showcasing improvement in deal volume while some experiencing decline.”
Europe has been particularly hard hit, with a staggering YoY decline of around 16%. This downturn is reflective of the ongoing economic challenges faced by the region, including energy crises and inflation, which have created an uncertain investment climate.
In contrast, North America, Asia-Pacific and the Middle East and African region have shown relative resilience, with modest declines of around 4%, 8% and 4%, respectively. Meanwhile South and Central America have experienced a contraction of around 13%.
The US, while still leading in deal volume, has seen a decline of around 3%. The UK and China, however, have faced more significant challenges, with decline of around 20% each. Notably, India, Japan and the UAE have bucked the trend and showcased improvement in deal activity during the review period.
Bose concludes, “While global deal activity slows, markets like India, Japan, and the UAE show resilience, driven by stable economies and demand for innovation. Going forward, we may see a more region-specific deal landscape, with investors focusing on growth opportunities in emerging markets while exercising caution in more uncertain economies.”
