Executive Summary/Highlights

• Despite signs of recovery in Q2 2023, global dealmaking slowed in Q3 2023, and annualized year-to-date M&A volume is now on pace to be the lowest total since 2003.
• Global M&A volume was US$655 billion in Q3 2023, a 16% decrease from Q2 2023 and an 11% decrease from Q3 2022.  If the current pace of M&A activity continues for the remainder of the year, global M&A volume in 2023 will reach US$2.7 trillion, a 26% decline compared to 2022’s US$3.6 trillion and a 58% decline compared to 2021’s record US$6.4 trillion.
• Despite the slowdown, several mega deals were announced in Q3 2023, including Cisco Systems’ US$30 billion acquisition of Splunk, GTCR’s US$14 billion acquisition of a 55% stake in Worldpay and Smurfit Kappa Group’s combination with WestRock for approximately US$12 billion.
• The Technology sector led all other major industry sectors in total deal volume in the third quarter, accounting for 16% of aggregate global M&A volume and displacing the Energy & Power sector as the most active sector.  Significant Technology deals included the largest deal of the quarter, Cisco Systems’ US$30 billion acquisition of Splunk, as well as the US$6 billion acquisition of New Relic by Francisco Partners and TPG Capital.
• Cross-border M&A volume was US$209 billion in Q3 2023, a decrease of 35% from Q2 2023, a decrease of 18% relative to Q3 2022, and a decline of 49% compared to cross-border M&A deal volume over the last ten third quarters.  Three of the ten largest deals of Q3 2023 were cross-border.
• U.S. M&A volume accounted for US$307 billion of global M&A volume in Q3 2023, representing 47% of global M&A volume, an increase from its 40% proportion in Q2 2023, its 42% proportion in 2022 and its 44% share over the last ten third quarters.

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