How did M&A across Asia Pacific fare on the count of deal kickoffs and diligence times in the early part of 2025?

Globally, new deal kickoffs experienced an 11% year-on-year increase in Q1 2025, while APAC saw a rise of 15%, surpassing the global figure by 4 percentage points (pp) – according to data from the latest Datasite Forecaster’s insights into M&A activity in terms of deal kickoffs, deal closures, and diligence days.

Global deal outcomes for successfully closed deals decreased by 4 pp year-on-year. APAC’s due diligence score was somewhat concerning, as diligence time increased by 73 days compared to the same period last year, while the global due diligence days rose by 3 days year-on-year. The first quarter was also a strong period for asset sales growing 18% year-on-year, compared to capital raises, which was down 7%.

Datasite’s APAC Q1 due diligence scorecard puts a spotlight on transaction trends and breaks it down further into sector-wise and country-wise performance for dealmaking in the region.

Japan on a roll, Southeast Asia surprises

Japan is supercharged by a weak yen and a newly investor-friendly corporate governance environment. It stood out amongst APAC nations, attracting deployment from international private equity sponsors, according to Datasite’s latest APAC Deal Drivers report. While the total number of M&A transactions receded slightly in early 2025 compared to the previous year’s first quarter, overall deal value experienced a major lift.

The country saw 15% new deals in Q1, with an increase of 6 pp in deal success rates year-on-year, which was the highest in APAC. The emphasis among Japanese policymakers on unlocking shareholder value is driving high-quality deal flow. Deal volume reached 788 transaction announcements, a slight 5.7% year-on-year decrease, while aggregate deal value climbed to US$33.6bn, a 75.8% jump relative to Q1 2024.

M&A activity in Southeast Asia softened in Q1, with 147 transactions announced worth a combined US$9.7bn, representing year-on-year declines of 17.4% and 22.2%, respectively. However, Datasite’s Forecaster reports that Southeast Asian deal starts are booming. The region saw a phenomenal 56% increase in new deals in Q1, with an increase of 1 pp in deal success rates year-on-year. Another achievement for M&A in the region is the decrease in due diligence days by 139 days and a decrease of 2 pp in deal holds.

Industrials & TMT kickoffs and close

In the first quarter of 2024, there were 1,627 APAC assets reportedly coming to market, according to Mergermarket’s heat map of ‘companies for sale’ stories featured in Deal Drivers: APAC Q1 2025. That figure has since fallen 13% to 1,446 over the same period this year.

Greater China is the clear locus of anticipated activity, accounting for 566 stories. The industrials & chemicals (I&C) sector leads decisively with 195 potential deals (324 total expected for APAC), reflecting China’s continued emphasis on domestic self-sufficiency.

The technology, media & telecoms (TMT) sector follows with 129 stories (294 total expected for APAC), driven by the nation’s vast digital economy, its ambitions to be the world’s AI leader.

While the TMT sector successfully closed more deals from the same quarter last year by 6 pp, I&C kicked off 6 percent more new deals year-on-year. A notable data point in the Forecaster report records a decrease of 117 days in due diligence time for TMT deals, while I&C registered 11 days less for due diligence year-on-year.

As the impact of the US trade tariffs continue to disrupt APAC economies, it remains to be seen how many new deals will be launched and which sectors or countries will report successful deal closures.

Stay up to date on where the global and local M&A markets are heading with Datasite’s Forecaster and Deal Drivers reports.