PwC India Report: M&A deal grew by 60% to reach $19.6 billion in Q1 2024

The first quarter of 2024 saw a significant increase in deal volume, with 455 deals totalling USD 25.6 billion in disclosed value, up 24 percent compared to the fourth quarter of 2023.

PwC India highlighted this growth in the report titled 'Deals at a glance'

"This signals a shift from the declining trend observed throughout 2023," it added.

Sector-wise, traditional sectors took the lead, drawing significant investments in the changing deal-making scenario. The media and entertainment sector topped the charts in terms of value, while the retail and consumer sector continues to lead in terms of the deal volume.

Analysing the deal activity in Q1 2024, Dinesh Arora, Partner & Leader – Deals, PwC India, said, “Amidst a landscape ripe with opportunities, the Indian economy emerges as a beacon of resilience. The first quarter of 2024 showcases the best figures in the last six quarters owing to the momentum of the market and large-ticket deals, hinting at a bold appetite for strategic expansion and market dominance.

"The quarter also heralds a promising horizon for capital markets and embodies an unyielding optimism. As deal makers, businesses and investors look towards the future, the energy is palpable.”

In Q1 2024, the market activity in terms of volume shows a significant uptick compared to the last two quarters. M&A deals and PE investments rose by 23% and 24% respectively.

The total deal value exhibits a significant rise this quarter, led by M&A deals, where deal value soared from USD 12.2 billion in Q4 CY23 to USD 19.6 billion in Q1 CY24 – marking a 60% increase.

Despite a slight dip in PE deal value from USD 7 billion to USD 6.1 billion this quarter, the total deal value for Q1 2024 stands at USD 25.6 billion – 33% higher than Q4 CY23. This is also 30% higher than the values inQ1 CY23.

This quarter saw 14 deals with value over USD 500 million, as compared to just nine such deals in Q4 CY23, of which 12 are M&A transactions.

The average ticket size for M&A remained unchanged, while the same for PE investments saw a decline of 39%, indicating that although the number of deals increased, the majority of these deals had smaller ticket sizes.

Most deals with disclosed values are in the lower- and mid-market segment, with around 80% of the total deals below USD 50 million.

Sectors like media and entertainment, power, pharmaceuticals, retail and consumer, and financial services saw high deal values, showcasing substantial investment in traditional sectors.

Moreover, the retail and consumer sector continued to display a high deal volume, with 81 deals this quarter, followed by the technology sector which saw 49 deals.

The largest deal of the quarter comes from the media and entertainment sector, where Reliance Industries signed a binding agreement with Disney to form a joint venture, combining the businesses of Viacom 18 and Star India.

This is expected to create a media behemoth across TV broadcasting, streaming, movies and sports.