M&A deals to shrink further in 2020

Chennai: Merger and acquisition deals have witnessed significant erosion of value this year. Deal value will further shrink in 2020 as global deal space will continue to slowdown.

In 2018, M&A deals had touched a high of $81.6 billion. Global law firm Baker McKenzie expects the deal value to come down to $52.1 billion by the end of 2019. Even in September quarter, the deal value had dropped by half against the year-ago quarter.

By 2020, the total deal value can further come down to $44.6 billion as the global deal making will continue to slow down because of ongoing worldwide economic uncertainty and the risk of global recession. M&A will decline globally from $2.8 trillion in 2019 to $2.1 trillion in 2020, finds Baker McKenzie.

In India, domestic deals will dip from $36.4 billion in 2019 to $29.4 billion in 2020. In 2018, domestic deals accounted for $37.2 billion. Cross-border deals will continue to be subdued.