SEA executives bullish on M&A outlook over next 12 months

There's growing confidence in the local economies.

Executives in SEA are expecting to see stronger M&A market over the next 12 months, with 76% of SEA executives expect the M&A markets to improve locally compared with 51% who held such a view six months ago.

According to a report from Ernst & Young, this sentiment interestingly is expressed across all markets.

Growing confidence in the local economies, optimistic expectations in corporate earnings, ready access to financing are all strong attributes that are driving M&A sentiment.

Here's more from Ernst & Young:

A significant majority of the executives see the M&A market improving across the SEA markets. Over 55% see at least two deals in the pipeline with a very high expectation to see that pipeline improving over the next 12 months.

Overall the deal appetite is high with a strongest activity in the coming year to be largely focused on the mid market.

“With strong economic sentiment and ready access to capital focus on M&A across sectors and markets in the region is showing a good outlook.

There is increased levels of attention that is being devoted by corporates – local as well as multinational – competing with financial players to secure the right business.

However, less than 50% see likelihood of closing deals. This signals that selling appetite in the region is low and sellers are not motivated just by looking at the price on offer," said Luke Pais, M&A and PE Leader, ASEAN.