The number of terminated private equity-backed deals globally fell 86.2% year over year to just four in the second quarter, according to data from S&P Global Market Intelligence.

The decrease in terminated deals suggests a stronger closing momentum in recent periods, as buyers and sellers bridge valuation gaps more effectively.

In 2023, private equity relied on earnout provisions to address valuation challenges. The provisions became less common as sales processes grew competitive, and the economy appeared to be on track for a soft landing, helping to bridge the persistent gap between buyers and sellers in the M&A market.

Canceled private equity transactions are mirroring the broader decline in overall terminated M&A deals. The number of terminated M&A deals without private equity involvement tumbled 77.8% year over year to just 34, marking the lowest quarterly figure since at least 2021.

The dollar value of the terminated private equity deals declined to approximately $2.84 billion in the second quarter, down from $14.43 billion in the same period of 2023, Market Intelligence data shows.

In terms of overall M&A, the value of canceled deals in the second quarter rose to $62.88 billion versus $42.81 billion in the year-ago quarter.

The dollar value of the terminated private equity deals declined to approximately $2.84 billion in the second quarter, down from $14.43 billion in the same period of 2023, Market Intelligence data shows.

In terms of overall M&A, the value of canceled deals in the second quarter rose to $62.88 billion versus $42.81 billion in the year-ago quarter.

Read the full S&P Global Report.