Global deal volume dips 9% in 2025 as Europe falters; India, UAE, Japan defy slowdown: Report

The global deal landscape has slowed in early 2025, with overall deal volume dropping 9% year-on-year (YoY), according to GlobalData. While Europe has faced a sharp contraction, markets like India, Japan, and the UAE have shown resilience amid the downturn.  

An analysis of GlobalData’s Deals Database reveals that mergers & acquisitions (M&A), private equity and venture financing all recorded declines in the first two months of 2025 compared to the same period in 2024.  

M&A deal volume fell by approximately 9%, reflecting a more cautious approach from businesses reassessing their growth strategies. Private equity deals saw a more modest 3% decline, suggesting that investors are becoming increasingly selective.  

“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,” said Aurojyoti Bose, Lead Analyst at GlobalData.  

Venture financing deals were also hit hard, dropping around 9%, as startups and emerging businesses struggled with tighter capital availability.  

“Even though the intensity varied widely, all 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 others saw declines,” Bose added.  

Europe bore the brunt of the downturn, with a staggering 16% decline in deal volume, reflecting economic uncertainty driven by inflation and energy concerns. South and Central America also struggled, seeing a 13% drop.  

Meanwhile, North America, Asia-Pacific, and the Middle East & Africa showed greater resilience, with relatively modest declines of 4%, 8%, and 4%, respectively. The US, while still leading in deal volume, saw a 3% drop, while the UK and China posted steeper declines of around 20% each.  

Amid the broader slowdown, India, Japan, and the UAE stood out with improved deal activity.  

“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,” Bose concluded.