APAC region rousing itself for 2023 recovery

APAC was hardly immune to the global headwinds that characterized and hindered M&A through most of 2022. Considering the dealmaking statistics for the first three months of this year, the region still seems stuck in that squall. Overall deal volumes and aggregate deal values continue to trend in the wrong direction.

The trajectory of the Chinese M&A market of course has an outsized impact on APAC’s region-wide figures, and its largest economy continued to struggle in Q1. But there are signs outside the dealmaking arena that may point to recovery in the not-so-distant future.

In its most recent World Economic Outlook, published in early April, the International Monetary Fund (IMF) projected that China’s economy will expand by 5.2% in 2023, up from 3% last year, on the back of higher retail consumption, export growth, and infrastructure investment following the undoing of the country’s zero-Covid restrictions. A more upbeat economy will invariably precipitate more M&A both in China and throughout the region.

Future-proofing M&A

China may be the bellwether for APAC M&A overall, but it would be short-sighted to overlook other markets in APAC, which through Q1 2023 generated a handful of big-ticket deals that may prove indicative of the future of M&A in key industries.

From digital transformation and alternative energy to precious metals and mobility solutions, dealmakers in the region are capitalizing on major trends and innovations that will characterize M&A in core sectors moving forward, especially in APAC’s more advanced economies.

India and other emerging markets in Southeast Asia likewise continue to generate exciting deals. Telecommunications, financial services, industrial, and infrastructure transactions remain vital to the maturation of these countries, and benefit from strong government support. Taken together, APAC’s diverse and growth-minded economies appear ready to rally back from a disappointing 2022.

Published in association with Datasite, Deal Drivers APAC provides an in-depth review of M&A activity in 2023, as well as an outlook for the year ahead.

The report is also available on datasite.com.