M&A Outlook in Southeast Asia: Hopes of Recovery

Deal activity is rising, and optimism is widespread in 2021.

22 March 2021

Southeast Asia M&A dealmaking Intralinks

Asia-Pacific (APAC) is slowly recovering from a pandemic-stricken market. The good news is that mergers and acquisitions (M&A) deal flow is up YoY in almost every country here, with markets high — and leaning toward IPOs.

Coronavirus-related travel restrictions continue to hamper due diligence. Site visits, which are still difficult, have triggered a technology transformation: Managers have come to rely on using online meetings and videos to compensate for lost travel and implement virtual solutions to keep deals on track. Across SEA, we’re seeing a rise in deals in the Real Estate, Industry and Energy sectors after a brief lull in early 2020.

Southeast Asia on the rebound

Amid a host of challenges, including recently enacted legislation and policy changes, the M&A market in Southeast Asia is at an all-time high, with BFSI, Energy and Pharma as the most active sectors. The next six months are expected to be busy with capital market transactions here.

Deals that could not close last year due to the health crisis are now nearing completion. Dealmakers have grown accustomed to managing transactions virtually in a work-from-home environment. As a result, a large number of the transactions starting now are expected to be completed within the next six to 12 months.

M&A activity is picking up, especially with cross-border transactions. Singapore and Thailand — two rising investment destinations in the region — have been at the epicenter of these deals.

Going from strength to strength

Large companies are anticipated to IPO in S.E. Asia, and its strong momentum from Q4 2020 continues into Q1 2021. Singapore has emerged as a leader in renewable energy. The region is showing a large-cap private equity (PE) pipeline with marked activity in growth deals, and we expect a strong deal flow here over the next six months.

To get a forecast of where M&A will go in the next six months globally and regionally, be sure to read the just-released Q2 2021 SS&C Intralinks Deal Flow Predictor. The quarterly report is a highly accurate six-month forecast of M&A activity by tracking early-stage transactions.

This issue includes a spotlight feature looking at Big Tech in the wake of growing worldwide antitrust sentiment. There’s also an insightful interview with Raquel Perez Martinez, executive investments and M&A director Europe and Brazil at EDP Renováveis (EDPR), about the surge in transactions across the Renewable Energy sector.

Vincent Lork Intralinks

Vincent Lork

Vincent is the vice president of sales in Southeast Asia, leading a team that services Singapore, Indonesia, Thailand, Vietnam and other countries in the region. He has a strong record of growth in 20+ years of experience in sales leadership and 10+ years in the virtual data room industry.

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