PitchBook - Global M&A Report

The North American M&A market experienced a decline in Q2 2022, with a reduction in both deal value and volume. This was largely due to geopolitical tensions, inflation, and supply chain issues caused by the ongoing pandemic. The US economy struggled with weak consumer spending, higher interest rates, and surging inflation. In addition, the Canadian central bank's more aggressive response to combat inflation could prompt similar action by the US Federal Reserve, which could dampen market activity. However, strategic buyers and private equity firms continued to pursue opportunities for growth despite the uncertainty. Sixteen mega-deals, each worth over $5 billion, demonstrated resilience in the market, even though valuations could be lower due to higher interest rates.