The Overview of M&A in Asia and How to be Successful in Conducting Them

Mergers and acquisitions (M&A) can be very profitable for the companies involved in those activities. To make them even more profitable, a number of global companies choose to involve Asian companies in their M&A deals. However, performing M&A in Asia requires a special strategy.

Asia is a unique region with unique cultures. A number of companies in Asia have different company cultures compared to those in Europe or the US. In addition, some of those companies apply different business etiquette and use different languages. It is why you need different strategies to approach them.

The Overview of M&A in Asia

A number of global investors and business players see Asia as a favorable region for mergers and acquisitions. The large market consumer in this region allows them to gain higher market share or improve their sales through a merger or an acquisition.

In 2021, the number of deals in Asia was 30% higher than it had been before the pandemic. It was also 40% higher than the number of deals in 2019. The deal volume of M&A in Asia in 2021 contributed approximately 35% of the global deal volume of the same year.

The average deal size in Asia was about $288 million in 2021. It was lower than the average deal size of EMEA that reached about $640 million or that in America that reached around $710 million.

Several factors affected the M&A deal size in Asia. Some of them are geopolitical conditions and macro developments in the world. When Asian companies feel confident about this macro development, they will be more open to M&A deals.

Meanwhile, global companies tend to have M&A deals only with certain sectors or industries in Asia. Some of the popular sectors are renewable energy, telecommunication, financial services, fintech, retail, and technology.

How to Have Successful M&A Deals with Asian Companies

M&A deals in Asia come with various challenges. If you cannot alleviate these challenges, your deals will not go smoothly. They can even turn into failures. Therefore, it is better for you to hire an Asian M&A strategy consulting agency before and during the M&A process.

This agency will do many things for you, for example justify the Asian company value and make sure that you have the best value of the deals. The M&A strategy consulting agency even helps you find the best partner or acquisition targets for your upcoming M&A deals.

Asia has been recovering from the pandemic quite well. There are various indicators that have proved it. One of them is the increased number of M&A deals in Asia. In 2021, this number is much higher than that during the pandemic.

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