Firms persist with M&A to expand

Mergers and acquisitions (M&A) will remain a key strategy for companies globally to expand markets and value chains amid increasing turbulence, according to a new report.

The 5th annual “Global Mergers & Acquisitions” report by Bain & Company found global M&A value dropped 36% last year, attributed to interest rate hikes and macroeconomic uncertainty, which stalled the market in the second half. In Asia-Pacific, the value of deals was slightly below pre-pandemic levels, dropping 22% from 2021 to US$3.8 trillion last year.

The M&A outlook for 2023 is brighter as executives are looking forward to closing more deals this year despite economic uncertainties, said Bain, a US-based management consulting firm.

Executives remain confident that an M&A strategy can create value, as they are encouraged by more attractive asset availability and lower competition, according to…