It is a difficult time for investment bankers, as the mergers and acquisitions business saw a record decline in the second half of the year.
Activity in global deal activity saw a record decline in the second half of the year as rising interest rates, economic uncertainty and the war in Ukraine put the brakes on the mergers and acquisitions (M&A) business. That stands in stark contrast to the bumper year of 2021 when transactions skyrocketed.
According to data provider Refinitiv, $1.4 trillion worth of mergers and acquisitions were announced in the six months ending in December, the «Financial Times» reported (behind paywall). In the first six months, deals worth $2.2 trillion were inked. The setback represents the biggest decline from one half-year to the next since records began in 1980.
Biggest Setback in Decades
The global deal volume fell 38 percent from 2021, the sharpest year-on-year decline since 2001, although volume was still high by historical standards and above global totals in 2016 and 2017.
The number of megadeals worth more than $10 billion contracted sharply over the year, with 25 signed in the first half of the year but only 11 in the second.
Credit Suisse Significantly Affected
The deal slump caused fees and revenues to plummet at all major institutions. The M&A business at Credit Suisse dropped the most, as reported by finews.com.
