Executive Summary/Highlights

• Global dealmaking slowed significantly in Q3 2022, reflecting current macro-economic and geopolitical uncertainties and challenges. Nevertheless, many deals got done and many of the traditional drivers of M&A point to meaningful deal flow in Q4 and beyond.
• Global M&A volume was US$692 billion in Q3 2022, a 37% decrease from Q2 2022 and 58% decrease from Q3 2021.
• Despite persistent inflation, rising interest rates and macroeconomic uncertainty, several mega deals were announced in Q3 2022, including Adobe’s US$20 billion acquisition of Figma and the US$14 billion takeover of STORE Capital by an investor group comprised of GIC and Blue Owl Capital.
• Amidst geopolitically-driven energy market dislocations, the Energy and Power sector led all other major industry sectors in total deal volume in Q3 2022, accounting for 26% of aggregate global M&A volume and displacing the Technology sector as the most active sector. Technology had been the leading industry sector in global M&A volume for eight consecutive quarters.
• Cross-border M&A volume was US$257 billion in Q3 2022, a decrease of 25% from Q2 2022, a decrease of 65% relative to Q3 2021, and a decrease of 34% compared to average cross-border M&A deal volume over the third quarters of the prior 10 years. Cross-border transactions represented 37% of global M&A volume in Q3 2022, in-line with the proportion over the last ten years.  Four of the 10 largest deals of Q3 2022 were cross-border.
• U.S. M&A volume was US$249 billion in Q3 2022, representing 36% of global M&A volume, a decline from its 39% share in Q2 2022, and below both its 41% share in Q3 2021 and its 45% average share over the third quarters of the prior 10 years.  In contrast, acquisitions of European and Chinese companies represented a slightly higher share of M&A volume in Q3 2022 than in prior periods.

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