Big Deal: Inflation, interest rate hike, market volatility impact deal transaction

Talk of the town is the slowdown in deal street which is a combination of various changing dynamics. Liquidity squeeze for one, market volatility another, and change in business views due to various macro factors accentuated by geopolitical situations.

In this episode of Big Deal, Nisha Poddar spoke to Zia Mody, co-founder, and managing partner at AZB & Partners to take stock of how the second half of the year looks like for mergers and acquisitions, transactions, and fundraising.

Mody said that the slowdown is real. "If you are judging the frequency of the deals, the competitive nature of earlier biddings, the high valuations that were floating around, I think I would say that there has been a slowdown,” she said.

She added, "I see the next two quarters, including the last quarter, being much more slow investing climate, compared to what it was earlier. 2021 was out of whack. This time I think the world is taking a pause, seeing what is happening in the US, with the fed rates, our response by the RBI, credit has become expensive and so the leveraging has also slowed down.”