M&A activity across the APAC region as a whole slipped in Q1, which was to be expected after a record-setting 2021. It’s a trend that can be observed across geographic markets and is best understood as a reversion to the mean rather than a cause for concern at this stage.

There were a total of 1,122 deals in the APAC region in the first quarter, worth an aggregate US$160bn. This represented a 9% drop in volume and a 21% fall in value compared with the first quarter of 2021, but it is in line with pre-pandemic levels of activity.

Dealmaking in APAC also saw a less precipitous decline than M&A in the Americas and EMEA, although this was due to a relatively less robust Q1 in 2021 compared to those regions.

Private equity activity also fell year-on-year in the first three months of 2022, albeit less steeply than overall M&A—which speaks to the bigger risk appetite that financial sponsors have compared with their corporate counterparts. Unlike strategics, the primary mandate of funds is to find deals at all times and this sees them sustaining their activity when the broader M&A markets take a breather.

The number of buyouts fell 5% to 211 deals, while value decreased by 17% to US$37.7bn. Exit volume dropped by 13% to 249 deals and value by 25% to US$45bn.

Published in association with Datasite, Deal Drivers APAC provides an in-depth review of M&A activity in 2022, as well as an outlook for the year ahead.

The report is also available on datasite.com.