Market Insights Financial Corporate Finance

Mergers and Acquisitions - Asia

Asia

The transaction value in the Mergers and Acquisitions market is projected to reach €0.38tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 2.63% resulting in a projected total amount of €0.39tn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €90.59m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Asia is experiencing a significant uptrend in activity.

Customer preferences: Asian investors are increasingly looking to expand their market presence and diversify their portfolios through strategic acquisitions. This trend is driven by a desire for growth opportunities, access to new technologies, and the potential for cost efficiencies through synergies.

Trends in the market: In Japan, there is a growing trend of domestic companies acquiring foreign firms to gain access to new markets and technologies. This is particularly evident in the technology and automotive sectors, where Japanese companies are looking to stay competitive on a global scale. Additionally, there is an increase in cross-border M&A deals between Japan and other Asian countries, signaling a shift towards regional consolidation.

Local special circumstances: China, as one of the largest economies in Asia, plays a significant role in the M&A market. The Chinese government's policies and regulations heavily influence M&A activity in the country. For instance, the government's focus on promoting domestic innovation has led to an increase in acquisitions of technology companies by Chinese firms. Moreover, cultural differences and business practices unique to China can impact the negotiation and execution of M&A deals in the country.

Underlying macroeconomic factors: The overall economic growth in Asia, coupled with low-interest rates, has created a favorable environment for M&A activity. Companies are taking advantage of cheap financing options to fund acquisitions and drive growth. Additionally, the increasing globalization of businesses and the rise of digital technologies have made cross-border M&A more accessible and attractive to companies in the region.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.