Monthly Dealtracker - September 2022

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The COVID-19 pandemic and the Russia-Ukraine geopolitical conflict have sparked inflationary conditions and significantly weighed on growth. Additionally, potential energy concerns loom in the euro region post the indefinite shutdown of the Nord Stream 1 pipeline by Russia and fears of global recession and COVID lockdowns in China are impacting demand and retaining market volatility. Amidst all this, India managed to become the world’s fifth-largest economy. When ranked by GDP, the country leapfrogged France and the UK.

“Even as the outlook for global growth remains clouded by uncertainties and exacerbated by geopolitical tensions, domestic growth is expected to hold up in the coming months. As the monetary policy measures will be aimed at anchoring inflation expectations, the macroeconomic situation is expected to improve on the back of high-frequency consumption and better industrial indicators,” said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.

Key highlights of the publication

  • Q3 2022 witnessed a 25% decline in deal volumes and a steep 66% decline in deal values compared to the same period last year
  • Compared to the previous quarter (Q2 2022), Q3 2022 recorded a 16% decrease in the deal volumes, while values witnessed a significant 89% drop
  • The start-up sector led the deal volumes, accounting for 27% of M&A volumes for the quarter
  • IT and retail sectors remained active, executing deals after the start-up sector, together accounting for 30% of total volumes for the quarter