M&A deals in India drop 10% to 793 in 2023: PwC report

India witnessed a significant drop in merger and acquisition (M&A) deals in the calendar year 2023 as per the PwC India report. Cumulatively, 1,860 deals with a total disclosed value of $75 billion were completed in CY23, according to the 'Deal at a Glance' report by PwC.

In CY23, the M&A deals totalled 793, a drop of 10% compared to CY22. Additionally, the total disclosed deal value for M&A fell by 38%. The drop in domestic deals was 18% to 494 last year in contrast to 601 deals in 2022. The total deal volume in the country dropped by 23% while the total disclosed value dropped by 38% since 2022. However, an uptick of 14% was seen in the volume of inbound deals. The report noted stability in deal activity in the country towards the last quarter of 2023.

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"In 2023, India resiliently navigated global headwinds, solidifying its appeal to international investors. The economic fundamentals stay strong reflecting investors' enthusiasm for the country's expanding economic opportunities. Despite a restrained deal-making environment throughout the year, deal activity stabilised towards the last quarter leading us to anticipate an upswing in 2024," Dionesh Arora, Partner & Leader-Deals PwC India.

The Private Equity (PE) investment dropped 36% to $36 billion last year. Despite the decline, the average investment size per deal expanded increased to $46 million in 2023 as against $42 million in 2022. However, in CY23 early-stage investments were 53% less than CY22. On the other hand, buyouts demonstrated resilience with only 5% decline compared to CY22.

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The top 10 deals of 2023 included JV buyouts, strategic investments, PE buyouts, and stick market mergers, contributing 21% of the total deal value. According to a PwC survey, 60% of the surveyed CEOs plan to make at least one acquisition in the next three years, and 70% anticipated leveraging M&A for the accelerated adoption of technology and related processes.