APAC Q1 2021 M&A: A Hopeful Asia-Pacific

Healing the hit on cross-border deals.

9 December 2020

SSNC Intralinks Deal Flow Predictor APAC M&A

Coming into Q4 2020, Asia-Pacific (APAC) has been spared the worst of the COVID-19 spread. Now, with the possibility of three COVID-19 vaccines soon to be available, there are hopes of stability across the region and, in turn, of deal growth. 

Looking across the rest of the world, investor sentiment still remains wary. They’re trying to do as much as possible — in as little time as possible — lest restrictions come in place again.

Cross-border deals have still been hampered, especially in emerging markets like Malaysia, Vietnam, Thailand and Indonesia. Mid-size firms have seen a rough patch — business has gone to bigger players in recent years.

Regional snapshot

By market, Japan saw an uptick in deal activity for Q3 2020, mostly from a backlog of deals from early in the pandemic. Deal flow has been resilient, especially in smaller deals. However, Q4 2020 deals have mostly been on hold. The mood is hopeful, with private equity (PE) funds showing an appetite to use up dry powder as Coronavirus vaccines loom on the horizon.

Southeast Asia, an economy relying on exports, has been hit hard. Sector-wise, Consumer and Financials have been the strongest, with some promise for other sectors in Q1 2021. The current sentiment here envisions the combination of the incoming Biden administration and COVID-19 vaccines restoring market stability and bringing with it the return of megadeals via U.S.-based investors.

For South Asia, after some uncertainty in determining valuations this past year, refinancing cases have helped make an aggressive return. Banks, NFBC’s, Pharma, Power and Retail are the top-performing sectors.

Similarly, South Korean M&A activity is very strong — especially in Technology and Industrials — thanks to lots of restructuring and bankruptcy deals in Q2 2020. Clients report that the Korean government will play a large role for 2021.

RELATED: What is the State of M&A Dealmaking in South Korea?

How does this all play into Q1 2021? Get the detailed regional and global forecast in the Q1 2021 edition of the SS&C Intralinks Deal Flow Predictor.

Independently verified as a highly accurate six-month forecast of merger and acquisition (M&A) activity, the SS&C Intralinks Deal Flow Predictor s compiled by tracking early-stage M&A transactions globally that are in preparation or have begun due diligence.

Along with our forecast of M&A activity for the next six months, the latest issue of SS&C Intralinks Deal Flow Predictor includes:

  • Spotlight feature: Global liquidity and financing 
  • An interview with Meghan McGurk, SVP of Investment Banking at Houlihan Lokey

Christophe Montane

Christophe Montane

Christophe joined Intralinks in 2019 as SVP – APAC Sales, overseeing 13 countries and the fastest-growing region of the business. Christophe’s mission is to lead the sales and marketing organization to a journey of innovation and continued growth to become the leading technology enabler for strategic transactions.

He brings to the team from prior roles two decades of experience in the technology and outsourcing sectors providing thought leadership and execution capability required for key large clients in their digital transformation programs.

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