Local merger and acquisition data from the accounting firm KPMG LLP found a significant slowdown in transaction volume for this year compared to levels seen last year.

As of Nov. 30, the number of transactions that closed in the Los Angeles region tallied to 588, while 58 deals remain in progress.

Total deal value for the region has climbed to $36.9 billion so far this year, with The Walt Disney Co.’s $8.6 billion acquisition of the remaining stake in the Santa Monica-based Hulu LLC accounting for the largest transaction following its close on Dec. 1.

The snapshot, which accounts for 11 months, shows a sharp decline from last year’s total of 1,104 deals closed in the region.

Slowed by headwinds such as high interest rates and aggressive antitrust action by the Federal Trade Commission, investment bankers and deal advisors see the market thawing next year amid signs the Federal Reserve could cool or pause hikes all together.

“While we are witnessing some indications of the M&A market reviving, many dealmakers I know are focusing on 2024 and beyond,” said Harris Bristol, a deal advisory managing director out of KPMG’s Los Angeles office.

Rexford Industrial Reality Inc., a real estate investment company based out of Brentwood, was the most active buyer in the region as it closed on 12 properties so far this year.

As far as the public offering market, Los Angeles has all but frozen this year, with only a handful of companies including Surf Air Mobility Inc. and FaZe Holdings Inc. debuting on the stock exchange with lukewarm welcomes.

“I believe that the IPO market will remain challenging, especially for tech and consumer unicorns looking for high valuations in a tight market,” Bristol said. “In fact, we’ve seen an increase in take-private transactions, as some public companies are finding more value in the private markets.”