Baird Report: Asia Pacific Outbound M&A Accelerating

Unlocking the Asian Buyer Universe in North American and European Sale Processes

 

September 2015

Asia Pacific outbound M&A activity is on a steep growth path, with over $275 billion of deal value in the last 18 months. Baird’s report discusses each region’s motivations for acquiring in North America and Europe:

  • Japan’s outbound M&A, across sectors, is driven by limited domestic growth with its shrinking, aging population
  • China is acquiring overseas to procure industrial technology and to supply branded Western products domestically
  • Indian corporates are acquiring overseas to move up the value chain, especially in business process outsourcing (BPO) / IT
  • Australasia is acquiring abroad to access developed markets and larger economies outside Australia / New Zealand

Baird analysed 350 Asia Pacific outbound M&A deals in four key sectors – Industrial, Technology & Services, Consumer and Healthcare – assessing the countries involved, type of buyer / seller, target subsector and valuation. We also evaluated Asia Pacific outbound deal drivers, as well as valuation perspectives, and considerations for Western sellers and Asian buyers in M&A processes.

Asian buyers have shown that they can pay premium valuations upfront for quality Western businesses and ‘trophy assets,’ as well as take a long-term view and invest significantly in challenged companies post-acquisition. Baird expects that more successful outbound acquirers from Asia Pacific will emerge and believes that relevant Asian buyers should be included in every North American or European sale process to optimise potential outcomes for sellers.

Learn more about Baird’s Global M&A capabilities.