Emerging opportunities - Financial Services M&A in Asia 2011

PwC's sixth annual Asian Financial Services M&A report explores the growing potential for deal activity in the region, including analysis of recent transactions and economic trends, and insights into emerging investment opportunities. The report is based on the findings of a survey of 375 senior executives in financial services, supplemented by client interviews, our own qualitative research and the views of PwC financial services M&A experts.

Key messages:

• Asian FS M&A declined in 2010, but held up well compared with other regions.
• Deal values for the first two quarters of 2011 have increased year-on-year.
• Survey respondents are increasingly confident in their own deal appetite and prospects for revenue growth.
• Domestic M&A remains the predominant driver of Asian FS transactions.
• Cross-border transactions are gathering momentum.
• Capital restrictions are emerging as the leading obstacle to FS M&A in the region.
• Despite renewed concerns over the global economic outlook, we believe FS M&A in Asia will accelerate through 2011 and into 2012.

How can you maximise the opportunities?

• Develop detailed executable plans under a range of scenarios including adverse situations.
• Develop individual and organisational credibility with regulators, central banks and investors.
• Ensure human capital and talent management are part of the M&A process from the start.
• Be flexible and consider a full range of approaches to M&A, including joint ventures, partnerships and distribution agreements, as well as full acquisitions and the use of strategic investments.