M&A deals up by 29% in 2022: Report

The total deal valuation has amounted to US$ 159 billion

January 30, 2023

Last year, 2,103 transactions took place

M&As accounted for a major share of the deal value, reaching a record high of US$ 107 billion

Private equity (PE) investments stood at US$ 52 billion

72% of disclosed deal value was generated from domestic deals in 2022

Mergers and Acquisitions (M&A) and other corporate deals in India crossed pre-Covid levels to reach US$ 159 billion with as many as 2,103 transactions according to a report from PriceWaterhouseCoopers. In terms of value, this is a 29% increase from 2021, in terms of value.

According to the report, M&As accounted for a major share of the deal value, reaching a record high of US$ 107 billion. It was majorly driven by more than 20 large transactions. On the other hand, Private equity (PE) investments stood at US$ 52 billion, which was 22% lower than 2021 figures but 20% higher than all other preceding three years in terms of value and volume. 

The report further added that 70% of deal activity in terms of value and volumes was witnessed in the first half of 2022, and 30% of activity in the second half of the same year. Experts said that M&A will be an essential instrument for companies to move forward, integrate supply chains, beat disruption and boost their market share.

As per the report, 72% of disclosed deal value was generated from domestic deals in 2022. Sectors that are expected to stay active in terms of value creation and market share gain include financial services, technology, healthcare, energy and power and industrials. According to experts, India’s markets are achieving growth despite global macroeconomic concerns.  

In terms of PE deals, buyouts and late-stage deals witnessed a 55% and 33% decrease in deal value, respectively, compared to 2021. However, early-stage deals saw an increase in deal value by 13% in 2022 compared to the previous year. Experts said that this reflected investor confidence and the outlook for the Indian startup sector.

Source: Business Standard

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