INTHEBLACK June 2026 - Magazine - Page 46
F E AT U R E
a transparent, predictable and timely process,
delivering better outcomes for consumers
and businesses.”
IS MOMENTUM STILL THERE?
As 2026 unfolds, deal activity remains
relatively strong despite rising geopolitical
risks, widespread economic uncertainty and
evolving regulatory challenges in Australia
and abroad.
“2025 was a genuine rebound, and
that energy is flowing into 2026,” says
Munich-based Jens Kengelbach, managing
director and global leader of mergers and
acquisitions at Boston Consulting Group.
“However, this recovery remains
uneven — some might say ‘K-shaped’.
Like last year, we expect that well-capitalised
buyers will continue to pursue large
transactions while the mid-market will have
a tougher time engaging in dealmaking.
“Generally, we see supply and demand
intact. On one side, there are many
corporates with significant cash and healthy
balance sheets alongside private equity firms
sitting on significant amounts of dry powder.
On the other side, there are private equity
firms looking to exit investments, corporates
looking to divest businesses and certain
markets undergoing consolidation.”
Kengelbach says while tariffs, geopolitics
and national security considerations have
moved from the periphery to the centre
of the global M&A landscape, dealmakers
seem to have adjusted to this new regime
of heightened uncertainty and have become
less fearful.
READ
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46 INTHEBLACK June 2026
ASIA OUTLOOK
In South-East Asia, Andrew Heng FCPA,
group managing partner at Baker Tilly
Malaysia, says there was a noticeable
softening in M&A value in 2025, even
as deal counts remained relatively stable.
“Interestingly, while larger deals (above
US$30 million) saw a modest 2 per cent
increase, the volume of strategic deals
remained broadly flat,” Heng says.
“So, while the market did not collapse,
we saw a move toward smaller-ticket
transactions, a more selective approach
and less reliance on megadeals.”
Heng says that there has already been
a significant uptick in transactions in
Malaysia this year, with private equity
interest targeting a broad spectrum
of businesses, from manufacturing
to medical services.
“On the downside, geopolitical volatility,
tariff concerns and caution from financial
sponsors have made execution more
challenging. The primary concern at
the moment is not a lack of interest, but
rather the friction of execution. Financing
constraints, pricing and valuation gaps,
as well as cross-border uncertainty, are
prompting buyers to be more cautious.”
Looking ahead, Heng says that the most
promising M&A opportunities seem
to be in infrastructure, where the largest
pools of capital are being deployed, as well
as in energy and hard assets. Manufacturing
and digital economies such as fintech and
e-commerce also present significant
opportunities.
Shanghai-based Jess Zhou, head of
M&A China at global investment
management consultancy ARC Group,
adds that she is seeing a lot of Chinese
companies acquiring overseas companies
to establish local manufacturing operations.
“On the other side, we are also seeing
a lot of the spin-offs by large Chinese
conglomerates, and some Chinese companies
are divesting overseas investments they
acquired a long time ago.”
POWERFUL M&A TRENDS
The McKinsey research says powerful trends
should support global M&A momentum
in 2026: “dealmaking as a response to
change, the search for new sources of growth,
sustained interest in large deals and
a continued drive to streamline portfolios
in uncertain marketplaces”.
“Repeated rounds of external shocks have
made executives increasingly aware that they
must invest not only in core capabilities and
growth, but also in transactions that could
help control costs, protect margins and
mitigate risks,” the research notes.
On the Australian front, Pitcher Partners
says quality businesses are abundant
across sectors, and both domestic and
offshore buyers have been actively sourcing
opportunities. “Corporate balance sheets
are healthy and deals that stalled in the
past three years are finally getting across
the line … The question is no longer
whether Australia’s M&A market has
turned a corner. It is how far this cycle
has left to run.” ■
