October 30, 2023
Busted Deals: Q3 Deal Terminations Lowest Since 2020
According to this S&P Global report, despite the increasing challenges buyers face in obtaining financing and the other macro headwinds facing dealmakers, Q3 deal terminations reached their lowest level since 2020. Here are some of the key takeaways from the report:
– Only two private equity-backed deals terminated in Q3 2023. That’s down from 14 reported in Q2 and represents the lowest number of quarterly deal terminations in the past three years.
– The value of the two busted private equity deals was less than $1 million. In Q3 2022, a total of $26.4 billion(!) in PE-backed deals were terminated.
– Q3 also showed an 85% year-on-year decline in all terminated M&A transactions. Only 31 deals were terminated during the quarter, and that’s the lowest quarterly count since at least 2020.
– Overall, the value of deals terminated in Q3 2023 was $12.9 billion. That’s a 78% decline from the $58.4 billion reported in the same quarter of 2022.
– John Jenkins