Surge in bankruptcy and insolvency M&A: APAC outpaces global trends
A perfect storm of economic headwinds has ignited a surge in bankruptcy and insolvency M&A activity globally, according to recent data in Ansarada’s Deals Platform. This trend is particularly pronounced in the APAC region, which has outpaced global averages in the last quarter.
By AnsaradaFri Dec 13 2024Debt raising / restructuring, Mergers and acquisitions, Bankruptcy and Insolvency
Rising interest rates, inflation, and geopolitical tensions, have placed considerable strain on businesses worldwide. Certain sectors, such as real estate, construction, and retail, have been particularly vulnerable to these challenges.
Distressed assets are now more attractive to strategic and financial buyers driving greater demand for due diligence, valuation, and restructuring services.
A closer look at the numbers
Bankruptcy and insolvency M&A data in our Platform reveals the following insights:
-
Global surge: Bankruptcy and insolvency M&A transactions increased by a significant 56% quarter-over-quarter (QoQ) and 114% year-over-year (YoY).
-
APAC dominance: APAC outperformed the global average, with a staggering 58% YoY growth.
-
Quarterly slowdown: Both APAC and the global market experienced a slight quarterly decline in Q2 compared to Q1, with APAC's decrease more pronounced (-18% QoQ).
-
Growth relative to the previous year: Both APAC and the global market have experienced substantial growth compared to the previous 12-month period (189% and 179%, respectively).
Ansarada’s Deals Platform provides the tools and insights you need to navigate the complexities of bankruptcy and insolvency M&A. From due diligence to closing, our solutions bring order to M&A chaos.
APAC’s outperformance
APAC's dominance in the bankruptcy and insolvency M&A market can be attributed to several factors:
- Progressive insolvency reforms: Many APAC jurisdictions, such as Australia, Singapore, India, and China, have implemented significant insolvency reforms in recent years. These reforms aim to improve the efficiency of restructuring processes, attract foreign investment, and promote economic growth. For instance, Singapore has introduced new provisions for cramdowns in schemes of arrangement, pre-pack schemes, and super priority rescue financing, making it a more attractive destination for distressed businesses.
- Strong economic fundamentals: Despite recent economic challenges, APAC remains a region with significant long-term growth potential. Countries like China, India, and Indonesia continue to drive global economic growth, providing opportunities for M&A activity.
- Strategic opportunities: The region offers numerous strategic opportunities for both domestic and international investors. The large and diverse markets, coupled with a growing middle class, make it an attractive destination for M&A activity.
- Government support: Many APAC governments have been supportive of insolvency reforms and have implemented policies to encourage restructuring and M&A activity. This has created a favorable environment for distressed businesses to seek solutions through M&A.
Future outlook
As economic conditions continue to shift, it is essential for dealmakers to stay informed about the latest developments in the bankruptcy and insolvency M&A landscape. By understanding the underlying factors driving this trend, stakeholders can identify opportunities and mitigate risks.
It's crucial to have the right tools to capitalize on these opportunities. Ansarada’s Deals platform is designed to streamline your bankruptcy and insolvency M&A processes, from due diligence to closing. Get your deals in order with Ansarada.
