M&A values decreased by over 60% in Q3 2017 as compared to Q2 2017, and the $30.0 billion total deal value was roughly half of the average quarterly value witnessed over the prior two years. This decrease is driven by declines across all subsectors, except Biotech. However, the volume of deals was broadly consistent, which demonstrates that underlying demand and activity remains healthy.
While some of the challenges in recent quarters may persist, deal activity is likely to increase in the near term. Companies will continue to turn to inorganic methods to supplement growth and innovate their business models. Further, while debt markets may soften, robust deal funding will persist due to strong domestic and international cash balances.