With trillions in dry powder, private equity preparing for next wave of M&As in S-E Asia

PRIVATE capital, armed with a record level of unallocated funds, is poised to drive mergers and acquisitions (M&As) in South-east Asia. But heightened volatility also means that risk profiles are being reassessed – with implications for valuations, due diligence and deal structuring, bankers and lawyers say.

“The global outlook may be uncertain, but one region is bucking the trend. South-east Asia is a haven of relative calm and fast-rising prosperity, and this is reflected in the buoyancy of its M&A activity,” said Graeme Preston, the Asia head of corporate at law firm Herbert Smith Freehills in Tokyo.

Looking at the prevailing M&A trend, he said global businesses want to be in Asia and are expanding their presence in the region.