Tech suffers particularly badly
Global merger and acquisition (M&A) activity has slumped to its lowest levels in a decade, new research has found.
In what is a major source of revenue for many big City law firms, M&A deals fell by a hefty 17% to $2.9 trillion last year, marking the slowest annual deal-making period since 2013. Over 55,000 deals completed last year, a 6% dip on the previous year.
The report, produced by the London Stock Exchange, found that Europe suffered more than the US, with M&A activity falling by 28% to a 10-year low of $598.1 billion in 2023. The is compared to the 5% decline to $1.4 trillion witnessed in the US.
In slightly more positive news, the report does note signs of recovery in the fourth quarter of 2023.
In terms of the activity itself, energy and power accounted for $502.3 billion, an 11% uptick on 2022, while healthcare also enjoyed an increase of 11%. Both tech and industrials suffered declines of 47% and 14%, respectively.
So-called ‘mega-deals’ surpassing $10 billion dropped by 13% to $646.6 billion, while cross-border matters were also down 12% to $954.2 billion.
US law firms dominated the global list of M&A legal advisors, with Kirkland & Ellis, Latham & Watkins and Davis Polk securing the top spots. Freshfields was the highest ranked non-US firm in seventh.