Deutsche Bank observes robust merger and acquisition pipeline in Asia Pacific

ng opportunities in the region this year, three broad trends stand out for Deutsche Bank to pursue. Firstly, the year-on-year growth in financial sponsor activity continues to garner attention. More specifically, from the supply side, these firms have opted to not sell their assets, instead waiting for a more stable environment and more robust performance, explained Satsangi. “We’re seeing a lot of assets being brought back to market.”

On the demand side, there is a lot of dry powder, described as the highest there’s ever been. As a result, firms need to deploy these funds as soon as they can.

A second key theme is take-private transactions. This stems from what Satsangi has observed as a convergence in valuation expectations between buyers and sellers, particularly in Australia, Japan, and Hong Kong. In relation to this trend, the bank advised on multiple award-winning deals last year and expects this to continue in 2025.

Another trend is digital infrastructure, a sector in which Deutsche Bank saw some of the largest deals in 2024 as key players underwent consolidation – a trend that is continuing. Satsangi added, “We’re seeing that activity run into 2025, [and it is] expected to heighten over the course of this year.”

In looking to capitalize on the pipeline of deals across Asia Pacific, Deutsche Bank is leveraging its track record. “Clients are not only looking for local, in-country experts but also trusted advisors that can deliver the regional and global expertise and experience,” explained Lim.

This means tapping into global partners to bring the execution capability of the entire bank to clients – not just M&A but also financing and FX. “Our ability to run differentiated, tailored and focused sales processes has led to successful outcomes for our clients,” he added.

This approach has benefitted companies in various markets. Some Chinese clients, for example, have found it hard to manage their businesses abroad, turning to Deutsche Bank to help them exit. In Japan, where growth at home has been muted, companies have been looking for cross-border acquisitions, especially as activists enter their shareholder list.

“As deals get more complex and cross border, we have been able to be the trusted APAC M&A adviser given our track record across all these key markets in the region,” said Lim.