Southeast Asia market outlook
Southeast Asia had a record year in 2021, with over US$160 billion worth of deals, according to Dealogic data, being driven by large technology companies’ listings and supply chains shifting away from China. Although significant macro challenges lie ahead, the region’s compelling growth story is fueling a strong wave of M&A activity, and dealmakers who are coming out stronger from the pandemic are well placed to capitalise on the opportunities. Our panel of leading advisors will discuss the current trends, top transactions, and deal flow in the year ahead.
- Are we expecting more headwinds, and can a changing macro environment halt the deal momentum?
- What are the current trends in Southeast Asian M&A, and where are the deals coming from?
- Which are the next big sectors, and how should corporate and financial investors approach these opportunities?
- What is the outlook for the rest of 2022?
Private equity in Southeast Asia dealmaking
Southeast Asian dealmaking has always been dominated by family conglomerates; however, with the influx of private equity funds and the ever-growing market, slowly but surely, private equity is becoming a stronger force for M&A activity in the region. Partnerships involving private equity and family-owned conglomerates have historically been few and far between, but this trend may see a shift as business owners assess various strategies to combat the after-effects of the pandemic. This panel explores the opportunities in the region for financial investors, as well as what type of relationships can be cultivated between private equity and corporates going forward to open the way for private equity.
- How has the influx of private equity players impacted the regional M&A landscape?
- Which up and coming sectors are capturing the interest of financial investors?
- How is private equity perceived by larger conglomerates in the region, and are there opportunities to work together?
- How difficult is it to source deals in the region?
A roadmap for navigating the regulatory challenges
Regulatory changes seem to be on the rise, including measures such as protectionism, anti-trust, data privacy, cybersecurity, and responsible investment to name a few. A changing macro environment, along with a global push against big tech and ever-increasing geopolitical tension, are just some of the catalysts that are driving decision makers to develop new regulations. Our expert panel will look at how SPAC listing rules, ESG compliance, and data privacy are creating a new playing field, and how these regulatory trends are affecting investors.
- What regulatory trends are proving to be most challenging to navigate?
- What sectors are benefiting from the changes?
- How are data, privacy, and cybersecurity regulation shaping the conversation?
- How does foreign ownership regulations impact deals?
Finding cross-border opportunities
Southeast Asia is a region with significant potential, and the year-on-year growth in cross-border dealmaking is indicative of a greater opportunity for locally-based and offshore companies. Looking set to benefit from global supply-chain realignment, the digital transformation and strong consumer play make it an attractive destination for deals. Our panel of experienced investors and dealmakers outline the driving forces for cross-border activity and discuss hotspots in the region.
- What types of opportunities are overseas investors looking for in the region?
- What are some of the challenges for cross-border investors when conducting due diligence on Southeast Asian targets, and how do these differ from country to country?
- Which sectors are seeing the most activity from investors?
- What are the key hurdles dealmakers face when executing a transaction in the region?
Managing risk in M&A
Under the current volatile and uncertain external environment, dealmaking in 2022 comes with additional risk. Therefore, corporates must be well-positioned to counteract these threats, whether it is through comprehensive due diligence work, risk planning, or appropriate forms of transaction insurance. This panel will examine the risks associated with M&A in the current climate, as well as the strategies to mitigate them.
- What can businesses do to ensure that they are risk-ready?
- What are the top external risks against dealmaking in the year ahead?
- How do you manage geopolitical and financial risk?
- How can companies avoid data and cyber security breaches?
Technology deals - the main driver for growth
Southeast Asia’s digital economy is fueling business growth and providing opportunities for strategic and private market investors to pursue deals brought about by digital transformation in the region. The IPOs of some of the biggest tech companies in Southeast Asia have enhanced the attractiveness of the region as a viable tech ecosystem. Our expert panel of investors share their views on the best strategies to capitalise on this vast potential.
- What are the digital opportunities emerging post-pandemic?
- How active is corporate venture capital, and what role do they play in the ecosystem?
- What are some challenges of investing in this sector, and how does one navigate them?
- What is the preferred method of exit?
The rise of ESG in M&A
As decarbonisation and tackling climate change becomes a global conversation, applying ESG considerations in dealmaking is now a key factor in the quest for a more sustainable way of doing business whilst illustrating commitment to environmental issues, diversity, and supply-chain goals. Companies must change the way they approach potential acquisitions from the due diligence, financing, and risk perspective, and be prepared to walk away if ESG considerations might impact on the valuations and sustainability of the potential target. Lenders are affected as well, with sustainability-linked loans in 2021 up 79% year-on-year according to Debtwire. Against this backdrop, an expert panel will examine the impact of ESG on M&A practices, as well as how to future proof the approach to deals.
- Is ESG a game changer when it comes to dealmaking?
- How are corporations dealing with regulation and compliance?
- Is shareholder activism on the rise, and how does it affect dealmaking?
- How are lenders affected, and does that impact some sectors?
Close of conference
An error occurred trying to play the stream. Please reload the page and try again.Close
Sign-up to join the ION Analytics Community to:
- Register for events
- Access market insights
- Download reports