Local Spotlight: Deal Drivers in SE Asia & India - Pulse of the Market

By Robert Torio, Content Marketing Manager, APAC

Part 1 of a two-part blog series featuring insights from the Deal Drivers: Southeast Asia & India – M&A in H1 2020 and beyond webinar hosted by Datasite and Mergermarket

 

On the back of a strong M&A record in 2019, Southeast Asia saw a strong start in Q1 2020 with a total deal value of US$ 25.1bn. Meanwhile, despite dominating the largest PE transactions in Q1, India experienced a 30.4% drop in M&A in 2019, there was an expectation of a strong 2020 lead by the government of India encouraging disinvestments.

M&A deal flow has experienced a slowdown in the two regions because of the COVID-19 crisis, and the outlook remains uncertain.

Recently, 400+ dealmakers across SE Asia and India joined a live virtual briefing led Riddhima Saxena, Emerging Markets Editor at Mergermarket and engaged with our expert panelists:

 

Market sentiment: Most dealmakers are keeping a positive outlook

How corporates in India and across SE Asia perform during this crisis is yet to be ascertained; however, some bright spots are emerging in new-age sectors in the two regions as these economies remain underserved.

We asked dealmakers in both regions and more than half remain positive about M&A activity in the coming months. Our panelists have a similar outlook as well.

 

M&A to dominate activities and transactions

It is expected that corporates will focus on preserving liquidity and restructuring going forward and exploring private equity strategies which will evolve in the current environment. While 22% of dealmakers at our recent webinar believe mergers will dominate in the coming months, 40% think that asset purchase/sales would be more prevalent.

 

Technologies that help M&A adapt to the new normal

Dealmaking can be a travel-heavy pursuit with executives flying around the world for meetings, site visits, and due diligence. How are dealmakers closing deals while working from home? As economies across SE Asia and India are easing lockdowns in some areas, how are they are preparing to resume or ramp up dealmaking once more?

Dealmakers continue to embrace technology that can help them execute more successful deals. Almost 80% say the capability to complete due diligence virtually or remotely is the most important aspect of M&A technologies in the current situation.

 

End of Part 1

Watch this space for Part 2 of this two-part series, featuring expert insights from our panellists. 

 

Deal Drivers: SE Asia and India Webinar

In the meantime, you can watch on-demand the live briefing Deal Drivers: Southeast Asia and India – Mergers and acquisitions in H1 2020 and beyond and learn more about how across these regions are adapting to the COVID-19 crisis.

Watch Recording

Deal Drivers: SE Asia and India 2020 Report

M&A deal flow has experienced a slowdown in the two regions because of the COVID-19 crisis, and the outlook remains uncertain. Learn about trends that are driving deals despite the current situation.

Download report

Ready to Get Started?

You may also like:

Market Spotlight: SPACs are coming to Canada

Initial public offerings of special purpose acquisition companies on Canada’s stock exchanges, which have so far paled in comparison to the frenetic pace of US SPAC issuance, will likely increase this year. Read more coverage from our recent M&A Momentum in Canada webinar in this article from Mergermarket editor Rachel Stone.

880219542
Expert Spotlight on the Nordics

Four M&A experts recently discussed dealmaking in the Nordic region, including trends for 2021, the impact of COVID-19 on the market, and the growing importance of technology in streamlining the M&A process.

Market Spotlight: Exploring Building M&A Momentum in Brazil

After a challenging year for new deals, the Brazilian IPO market is picking up sharply - and driving a variety of changes in deal making. To take a closer look at these trends, Datasite, in partnership with Mergermarket, recently hosted a live webinar with a panel of local experts. Read the post-event blog and check out the replay for more.

Hong Kong