A new playing field: The outlook for M&A in Asia


The outlook for FS M&A in Asia 2009
How times change. One year ago, when we conducted our 2008 survey of Asia's FS M&A activity, respondents were relatively bullish. "Asian economies appear to be driven by a different dynamic," we stated, drawing comparisons with dire data from Europe and North America.

Much has happened since then and 215 senior executives who responded to the 2009 survey are markedly more cautious. The survey was carried out in January and February 2009 by the Economist Intelligence Unit on behalf of PricewaterhouseCoopers. In addition to the quantitative survey results, this report adds analysis based on qualitative research, including extensive one-on-one interviews.

Among the key findings of the research:
  • Despite a sharp fall-off in the number of M&A transactions, Asian financial institutions are actively exploring opportunities to expand
  • Firms are adopting a cautious approach, focusing on strenghtening existing capabilities rather than transformative deals
  • Domestic competition is increasingly important as a motivating factor in M&A in Asia's financial services market
  • M&A is likely to be aimed at improving offerings to Asia's growing middle class
  • Difficulty in valuing assets will remain a major obstacle to deals
  • While expansion is on the cards, restructuring will continue apace.
The report includes full survey results, designed to allow easy comparison between geographies and sectors and against the overall survey data. Click here to read the full report.