Mergers and acquisitions tumble more than 30% to fall short of $3 trillion for the first time in 10 years

• M&A deals fell by over 30% this year, clocking in below $3 trillion for the first time in a decade, Bloomberg data shows.
• Private equity spending on mergers is down 60% since in 2021.
• The M&A slowdown arrives in spite of multibillion dollar deals this year, especially in oil.

The dealmaking boom on Wall Street seems to be in the rearview mirror as mergers and acquisition values have fizzled to a 10-year low.

The total value of deals made this year is clocking in at close to $2.7 trillion, down more than 30% from a year ago and falling short of the $3 trillion mark for the first time since 2013, Bloomberg data shows. 

The slower M&A market is largely a symptom of lackluster activity in private equity. That's because buyout firms are less likely to make offers on companies given that it's been harder costlier to secure debt.

PE firms have spent far less on acquisitions than they did in 2021. The numbers are down 62% from two years ago, when spending hit $1.3 trillion, according to Bloomberg.

Another dampener on M&As has been the fresh flood of uncertainty from the conflict in the Middle East. Meanwhile, high interest rates after a decade of virtually zero-cost debt has pinched all corners of the economy. 

The dealmaking malaise also arrives in spite of some blockbuster mergers in 2023, especially in Big Oil. Beyond the $69 billion Microsoft and Activision Blizzard deal, there was Exxon's $60 billion purchase of Pioneer, and Chevron's $53 billion takeover of Hess. Not to mention Permian Resources' $4.5 billion, all-stock acquisition of Earthstone Energy. 

Other deals, including Alaska Airlines' deal to buy Hawaiian Airlines and Cisco's decision to acquire Splunk, are moving ahead despite the Biden administration's antitrust stance.