APAC firms top global M&A deal activity: Towers Watson

Companies in the Asia Pacific region, including India, are on a buying spree as there is a notable increase in deal activities by APac acquirers in the third quarter this year, a study says.

According to global professional services company Towers Watson's Quarterly Deal Performance Monitor, Asia Pacific led the pack by a significant margin in performance. Meanwhile, in terms of number of deals, North America took the crown with a total of 98 completed deals.

"This quarter's Deal Performance Monitor highlights the notable rise in performance by Asia Pacific acquirers, which suggests that Asian companies may be more focused on getting their deals right than doing more of them right now," Towers Watson's newly appointed M&A practice leader for Asia Pacific Marco Kaster said.

Kaster attributed the strong rise in deal activity by APAC region to "Asian companies' improvement in their due diligence capabilities and their recognition that an early focus on people integration issues is more crucial to the success of the deal than ever before".

"As the economy improves, countries such as China and India have greater confidence in the credit markets and companies in the region will be more active in seeking growth opportunities," Kaster added.

The survey further said that for the second quarter in a row, cross-border deals outperformed domestic deals as more and more companies are likely to go for deals outside their home countries.

Most cross border deals occurred in Europe, where 66 per cent were cross-border, compared to 30 per cent in Asia Pacific and just 17 per cent in North America.