In the midst of economic uncertainty and volatility, dealmakers are taking a more cautious stance in valuations and dealmaking.
As a result of this, the Asia-Pacific deal market has seen fewer headline-grabbing megadeals and more deals in the mid-market (deals valued between US$10m and US$250m).
YTD 2016, mid-market deals make up 58% of Asia-Pacific deal volume and 22% of value, and have consistently contributed to more than half the deal count since 2011. This compares to global totals of 32% by volume and 13% by value.
Baker Tilly International’s exclusive thought leadership publication Dealmakers: Mid-market M&A in Asia-Pacific 2016, produced in collaboration with M&A intelligence provider Mergermarket, analyses the trends and opportunities shaping the mid-market space in Asia-Pacific. The report examines individual markets and the drivers of deal activity, looking ahead to what the rest of 2016 and early 2017 will hold.
Key highlights from Dealmakers: Mid-market M&A in Asia-Pacific 2016:
Asia-Pacific mid-market M&A has grown its share of the world’s mid-market total activity by 11% over the last five years, from 28% in 2011 to 39% in 2015.
In 2015, the Asia-Pacific mid-market saw 2,405 deals worth US$163.9bn completed, registering an 85.4% increase in value and a 71.9% increase in volume as compared to 2011. Activity in YTD 2016 is following a similar trend, having seen 1,147 mid-market deals worth US$78.5bn.
Sectors driving Asia-Pacific mid-market M&A from 2011 to YTD 2016 include industrials and chemicals (22% of total deal volume); technology, media and telecommunications (17% of total deal volume); and consumer (11% of deal total volume).
In 2015, Asia-Pacific posted 763 cross-border mid-market deals worth US$52.6bn, accounting for 32% of total mid-market volume and 32% of value in the region. YTD 2016, the region has seen 364 cross-border mid-market deals worth US$25.8bn, or 32% in volume terms and 33% by value.
Click to download the report