A natural lull or something more concerning?

As was widely reported, 2015 was a record year in terms of global announced deal activity and it would not be unreasonable to think that after such a frantic final quarter to what was already a busy year, dealmakers are catching their breath and looking forward to their bumper bonuses. Add in to the equation that their deal pipelines may need re-priming and it is no surprise that deal values and volumes are well down globally in January. If you look back at the month of January from 2007 onwards, announced deal activity has always been traditionally much lower than in the preceding December. However, and rather alarmingly, so far this month a total of USD 169bn worth of deals have been announced. This is the second lowest value recorded in the month of January since January 2012, when the figure totalled USD 143bn, and is lower than both January 2008 and January 2009, when the Global Financial crisis and the global recession engulfed markets.

Here's hoping that this lull is more a reflection of depleted deal pipelines and well deserved holidays rather than growing concerns of a global downturn and market uncertainty!

Filed under: dealmaking, January, M&A, 2015