In an era of economic recalibration and industrial ambition, the inaugural Dealmakers Dialogues Philippines event brought together leading minds in finance, private equity, and infrastructure for an exclusive conversation on the evolution of M&A in the country.

Hosted by Datasite and PwC Philippines, the event offered a front-row view into how decision-makers are thinking about value creation, strategic alignment, and deal execution in one of Southeast Asia’s most dynamic markets.

PwC Philippines’ Chairman and Senior Partner Roderick Danao welcomed the delegates and emphasized the need for the Philippines to reinvent its economic model to drive more industrialization and attract more investors through increased M&A activity to become a truly progressive and successful economy. 

The event’s distinguished panel included:

• Mark Velasquez, Head of Investments & Corporate Finance, Aboitiz Equity Ventures
• William “Billy” M. Valtos, Jr., Senior Advisor of Investments, UnionBank of the Philippines
• Vincent Yang, Investment Director, Mizuho Asia Partners
• Celso Tagle, Group Director of Strategic Finance, Manila Water Co., Inc.

Led by moderators Rayna Tong, Sales Director at Datasite and Karen Patricia “Trissy” Rogacion, Partner, M&A | Corporate Finance at PwC Philippines, the panelists took a close look at M&A activity and opportunities in the Philippines, as well as the future of dealmaking in the country.

From the importance of due diligence and cultural alignment to the value of strategic clarity and reputation, here are the top five highlights from their insights and learnings.

1. Due diligence is critical

One of the most emphasized themes was the importance of comprehensive due diligence. The audience poll revealed that red flags uncovered during due diligence were the most common dealbreakers.

Due diligence must go beyond financials to include operational, legal, and even character assessments of management. Illustrating the last point, a deal was nearly finalized but fell apart due to unreasonable behavior from the buyer’s legal counsel, highlighting how even external advisors can derail a transaction.

Another red flag example: a deal was abandoned after discovering improperly secured permits. Despite strategic alignment and favorable returns, the unwillingness of the counterparty to rectify these issues raised red flags that could not be ignored.

2. Cultural and leadership alignment matters

Beyond numbers, people and culture play a pivotal role in deal success. Many deals fail not because of financials but due to misalignment in leadership vision or cultural fit.

For example, understanding a founder’s long-term goals is crucial. In many cases, founders are unsure about their plans, making it difficult to align on exit strategies or growth paths. These situations require patient engagement and philosophical conversations about legacy, succession, and personal goals.

The panelists likened M&A to a relationship, where signing a term sheet is like agreeing to go to prom, but post-signing is when you “meet the parents”—a metaphor for navigating deeper cultural and leadership dynamics. Trust and transparency are essential, especially in long-term strategic partnerships.

3. Strategic fit over opportunism

The panelists underscored the importance of strategic alignment in dealmaking. Rather than chasing every opportunity, successful firms focus on deals that align with their long-term vision and complement their existing business or open new strategic avenues.

This disciplined approach ensures that resources are allocated to ventures that enhance competitive advantage, rather than being spread thin across opportunistic but misaligned deals.

4. Walking away is sometimes the best option

Panelists agreed that even the most promising deals could unravel if due diligence reveals inconsistencies, legal issues, or operational weaknesses. Despite the time and effort invested, sometimes the best decision is to walk away. Each panelist shared stories of deals that were abandoned—often at the last minute—due to unresolved issues, such as being overly dependent on a single stakeholder or the lack of a viable roll-up strategy.

Such stories highlight a key lesson: discipline is as important as ambition. Knowing when to walk away protects firms from long-term regret and preserves capital for better opportunities.

5. Reputation and fairness are long-term assets

In a relatively small and interconnected market like the Philippines, reputation is everything. The panelists emphasized that how you treat your counterparties—whether buyers, sellers, or advisors—can have lasting implications.

They advised dealmakers to be fair and transparent, warning against greed or misrepresentation. Word travels fast in the industry, and a reputation for fairness can open doors to future deals, while a reputation for opportunism can close them.

Successful transactions often involve clients who are willing to make real changes before closing, not just cosmetic adjustments. Buyers must be realistic and open-minded, especially when dealing with family-run businesses that may have informal practices.

Trust, fairness, and integrity are not just ethical imperatives—they are strategic advantages. They foster long-term relationships, reduce friction in negotiations, and enhance the likelihood of successful integration post-deal.

The way forward

Drawing from hard-earned lessons that resonate across industries and borders, the panelists share their collective advice for dealmakers: Be persistent, be fair, and be strategic.

Focus on building relationships, not just closing deals. And above all, remember that the best deals are not just financially sound—they are built on trust, alignment, and a shared vision for the future.