These were the key insights
Those surveyed believe that the best M&A opportunities in Southeast Asia come from Indonesia.
Private equity investors rated technology and infrastructure as the two most attractive sectors over the next 12 months.
Attendees consider valuation and geopolitical conflicts to be the two biggest challenges for technology M&A transactions in Asia.
Nearly 90% of the attendees believe that the energy transition is, to a large extent, driving the growth of the M&A market in Asia.
Key trends in asia cross-border investment
ESG investment and responsible investment
ESG is not only an important part of a company's risk management system but also a significant way through which a company can improve its efficiency, value and image.
Increasing investments in energy and digital infrastructure
Greater interest in investments into assets that are driving solutions to global issues such as energy security and digitisation.
Energy transition
Increasing investments in not just renewable energy but also battery storage, carbon capture and other new novel technologies.
Compliance with foreign investment regulations
Foreign investment regulations are continuously changing, and we have seen a trend in the liberalisation of foreign ownership restrictions in Southeast Asia generally.
Increase in regulatory interest
An increase in regulatory interest in cross-border technology transactions, particularly surrounding national security and antitrust.
Mitigating and tackling IP risks associated with cross-border M&A
IP is playing an increasingly significant role in overseas M&A transactions, especially those in the field of IT, the internet, and advanced technology. It is crucial to: (i) assess the quality of the target company's IPR; (ii) determine who owns the IPR and its licensing status; and (iii) assess the stability / coverage of core IPR and its technological content and the impact it will have on the consideration to be paid.
Growth of Warranty and indemnity insurance
The role of W&I insurance has become increasingly prominent as financial investors demand a quick and clean exit from secondaries / transactions in which they act as sellers.
Stricter data and network security compliance requirements
In cross-border M&A transactions, the buyer should be 'live' to the requirements under local data and network security laws, including whether the proposed acquisition would trigger an obligation to notify regulators or data subjects.
