Market Insights Financial Corporate Finance

Mergers and Acquisitions - China

China

The transaction value in the Mergers and Acquisitions market is projected to reach €188.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -1.43% resulting in a projected total amount of €185.80bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €99.43m 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 China is experiencing a significant increase in activity.

Customer preferences: Chinese companies are increasingly looking to expand their market presence and diversify their business portfolios through mergers and acquisitions. They are seeking opportunities to acquire advanced technology, expand into new markets, and gain access to strategic assets that can provide a competitive advantage.

Trends in the market: One notable trend in the Chinese M&A market is the rise of outbound investments, where Chinese companies are actively pursuing acquisitions overseas to gain access to new technologies, brands, and distribution networks. Additionally, there is a growing trend of cross-border M&A deals between Chinese companies and foreign firms, driven by China's Belt and Road Initiative and the government's support for overseas investments.

Local special circumstances: The regulatory environment in China plays a significant role in shaping the M&A landscape. The Chinese government has been actively promoting M&A activities as part of its economic development strategy, leading to a more favorable environment for deal-making. Additionally, the increasing globalization of Chinese companies and the government's support for outbound investments have contributed to the growing number of cross-border M&A deals.

Underlying macroeconomic factors: China's strong economic growth, technological advancements, and increasing global influence are key factors driving the M&A market in the country. The government's focus on innovation and industrial upgrading has encouraged companies to seek M&A opportunities to enhance their competitiveness and drive growth. Moreover, China's growing middle class and consumer market present attractive opportunities for companies looking to expand their presence and capture market share.

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.