Regional Deal Dynamics Shift in Early 2025
The Asia-Pacific region witnessed a 2.6% decline in mergers, acquisitions, private equity, and venture financing transactions in the first four months of 2025 compared to the same period last year, according to GlobalData research. The decrease was primarily attributed to an 8.2% year-over-year drop in venture capital investments. However, mergers and acquisitions saw a modest 2.4% increase, while private equity deals rose by approximately 2%.
Aurojyoti Bose, lead analyst at GlobalData, noted that the region’s transaction landscape is exhibiting a mixed pattern. “The APAC deal landscape is showcasing a mixed trend characterised by a blend of resilience in M&A and private equity, juxtaposed with a fall in VC funding activity,” he said. “This mixed trend reflects the intricate economic dynamics at play across the region, with varying performances across key markets.”
Performance varied significantly across major APAC markets. China experienced a substantial decline in deal-making, with volumes falling over 15% compared to early 2024. In contrast, India and Japan reported year-over-year growth rates of 13% and 25%, respectively. Other markets, including Australia, South Korea, and Singapore, showed decreased activity, indicating uneven investment momentum across the region.
GlobalData cautioned that historical figures may be updated if new transactions are disclosed after initial reporting periods. In the broader global market, acquiring companies outperformed relevant stock market indices by 1.5 percentage points in the first quarter of 2025, according to WTW’s Quarterly Deal Performance Monitor (QDPM). This marks the first positive performance since the end of 2022.
The QDPM analysis, conducted in collaboration with Bayes Business School, highlighted regional variations in acquisition outcomes. North American buyers underperformed their index by 2.2 percentage points, while European acquirers surpassed their index by 16 percentage points despite a lower deal count. Asia-Pacific buyers also performed above market benchmarks, with 44 deals in Q1 yielding a 5.8 percentage point lead over the regional index.
Jana Mercereau, WTW’s Europe M&A leader, commented that although early 2025 has seen stronger performance, market volatility stemming from trade policies and geopolitical developments may influence activity going forward.
