Activity across global mergers and acquisitions (M&A) fell by 36% in the second quarter according to data, but there is optimism a corner will be turned as stock markets recover.
The total value of M&As fell to US$732bn in the second quarter, down from US$1.14tln, according to financial markets platform provider Dealogic.
Sky-high interest rates and the US debt ceiling debacle are blamed for dealmaking being put on the back burner.
M&A volumes in the United States declined by 30% to $318.4bn, while Europe and Asia Pacific volumes shrank 49% and 24% respectively.
Second-quarter deals did however surpass the first three months of the year, with US$601.32bn in deals announced, perhaps indicating that the tide is turning.
"We are bottoming out. In order for companies to continue to compete locally and globally they will have to grow organically, especially inorganically.
"We will see an increase in strategic activity," said Raymond McGuire, president of investment bank Lazard, quoted in Reuters.