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This survey, conducted by the Economist Intelligence Unit (EIU), on behalf of PricewaterhouseCoopers, examines the outlook for M&A deals in the financial services sector for the coming years, in terms of both target countries as well as the goals of M&A activity. In advance of publishing the overall report in June 2007, this paper provides you with the results of the survey element. Executives from 230 institutions in Asia participated in the survey, which was conducted during March and April 2007.
The surge of M&A activity seen in 2006 in the financial services industry in Asia will continue over the next five years. High levels of economic growth across the region will continue to attract investment, boosting demand for a limited supply of quality assets, thereby increasing the risk of overpaying. Almost three-quarters (74%) of the survey respondents predict that their organisations will undergo further significant M&A activity in the coming five years, compared to just over two-thirds (68%) in our previous survey, conducted in 2005. This optimism is all the more astonishing as financial services deal activity in the region is already at record levels, with 2006 disclosed deal value up 66% to US$64 billion, compared with the previous year.
Although this growth might be shifting in terms of key markets, the survey has confirmed that Asia is still the 'home of growth'. When compared to Europe, entry into the Asian market presents more of a challenge, as the environment is less conducive to control deals, which in turn increases the risks if you are not able to find the right partner. Although this risk in Asia remains high the growth potential will continue to present compelling opportunities.
Get Your Copy Here
Read more by downloading our Financial Services M&A: Going for growth in Asia (May 2007) (pdf file, 323KB) for your reference.
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