The beginning of 2024 showed resilience in deal-making, with a substantial uptick in market activity compared to the declines observed in 2023. According to the PwC India report 'Deals at a Glance,' the first quarter of 2024 saw a total of 455 deals amounting to USD 25.6 billion in disclosed deal value, which is a 24% increase in volume compared to the previous quarter. This resurgence signals a positive shift from the declining trend seen throughout the previous year.
M&A deal value notably surged to USD 19.6 billion, reflecting a significant 60% increase, while PE deal value experienced a slight dip in the first quarter of 2024. Domestic M&A deals accounted for a total of 143, with the largest deal reaching USD 4.5 billion. Partner and Leader - Deals at PwC India, Dinesh Arora, highlighted the robust activity observed in Q1 2024, attributing it to the opportunities present in the Indian economy, showcasing resilience amidst market momentum and large-ticket deals indicating a bold appetite for strategic expansion.
The sector performance in the first quarter was led by traditional sectors, drawing substantial investments in the evolving deal-making landscape. Media and entertainment emerged as the top performer in terms of value, while retail and consumer sectors maintained their lead in deal volume. In terms of market activity, there was a notable increase in M&A deals and PE investments by 23% and 24%, respectively, with a substantial surge in total deal value driven primarily by M&A deals. Despite a slight decrease in PE deal value, the total deal value for Q1 2024 stood at USD 25.6 billion, marking a significant increase from the previous quarter. The quarter observed 14 deals exceeding USD 500 million, predominantly M&A transactions, indicating a strong market sentiment towards strategic consolidations.