HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 47
SOUTH EASTASIA M&A ACTIVITY CONTINUES TO IMPROVE
M&A activities in South East Asia continued to show signs of improvement with 76 deals
PE completed 15 deals in Q3 2021 compared to 20 in Q2 2021 and deal value decreased by 26.1% from USD 2.3bn in Q2 2021 to USD 1.7bn in Q3 2021. KEY SECTORS AND DEALS The top three sectors accounted for 65.8% of total deal numbers in Q3 2021. The top performing sectors were as follows: Q3 2021: • Industrials & Chemicals – 20 deals (Q2 2021: 15 deals) • TMT – 17 deals (Q2 2021: 15 deals) • Business Services – 13 deals (Q2 2021: 6 deals). TRAILING FOUR QUARTERS FROMQ3 2021: • Industrials & Chemicals – 75 deals • TMT – 54 deals • Consumer – 45 deals Industrials & Chemicals maintained its position as the top sector with the highest cumulative number of deals based on the four-quarter cumulative sum of 75 as of Q3 2021.
completed in Q3 2021 compared to 73 deals in Q2 2021 and 67 deals in Q1 2021. The total deal volume in Q3 2021 was also the highest recorded since the outbreak of COVID-19 in March 2020, which indicates that M&A activities are picking up in tandemwith the recovery of the region’s economic activities. However, total deal value in Q3 2021 dropped by 23.8% from USD 8.0bn in Q2 2021 to USD 6.1bn. The average quarterly deal value also fell by 27.2% from USD 110.3m in Q2 2021 to USD 80.3m in Q3 2021. Notwithstanding the fall in total deal value, the total figure of USD 6.1bn was still comparable to the average deal value per quarter of USD 6.7bn for the previous four quarters (Q4 2020 to Q3 2021). The private equity segment continued to play a significant role in the region’s M&A, accounting for 19.7% of the quarter’s total deal numbers and 27.1% of total deal value.
BIG PICTURE
• Deal volume for M&A in South East Asia improved, with 76 deals recorded compared to 73 deals in Q2 2021 and 67 deals in Q1 2021 • Industrials & Chemicals was the top performing sector in Q3 • Malaysian and Singaporean companies were popular targets for M&A, accounting for 70% of the quarter’s top 20 deals • South East Asia remains as an attractive region for international investors, with 60% of the top 20 deals involving overseas buyers outside the region.
PE/TRADE VOLUME &VALUE
120
10,000
9,000
100
8,000 7,000 6,000 5,000 3,000 2,000 1,000 4,000
80
60
40
20
0
0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Trade Volume
PE Volume
Total Value (USD M)
PE Value (USD M)
Made with FlippingBook HTML5