The total number of global controlling-stake mergers and acquisitions terminated in a given year has dropped in each of the past four years. In 2017, 643 deals were terminated, compared to 428 in 2021. But there may be a shift in this trend depending on how the the remainder of 2022 plays out. This year’s count of terminated deals sits at 403 as of Nov. 18.
Quarterly counts of terminated deals display more volatility in the data. During Q2 2022, the number of terminated deals reached the highest total since Q4 2020.
The peaks and valleys of quarterly data fail to show the consistent year-over-year drop in the numbers of terminated deals. Even with a clear spike in Q2 2020, as the M&A market reeled under the weight of the Covid-19 pandemic, 2020’s annual count of terminated deals (483) was actually lower than 2019’s total (496).
Considering that the number of terminated deals has climbed in each of the last four Q4s, it is possible that we will see our first increase in the annual number of terminated deals since 2017.
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