M&A values in SEA drop 16% while APAC rebounds: Bain

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The value of M&A deals in Southeast Asia fell 16% in 2025 compared with the year before, diverging from a broader recovery in the Asia-Pacific region, based on the Global M&A Report 2026 released by Bain & Company this week.

While Asia Pacific’s strategic deal market grew 33% in value, Southeast Asia’s total deal value – which captures all transactions across corporate, private equity, and VC activity – dropped to US$61 billion in 2025 from US$73 billion the previous year.

This also stands in contrast with the global market, which the report describes as having a “broad-based rebound,” with deal value rising 40%.

“Regulations are easing. The cost of capital is easing. The buyer-seller gap is easing, with valuations rising slightly and sellers perhaps less tied to 2021 peak valuations,” Bain wrote.

Southeast Asia deal value falls, volume stabilizes

Southeast Asia’s decline in M&A deal value was seen across different types of investors.

For instance, deal value from financial investors, which includes private equity and other investment firms, dropped 28% year on year.

Venture capital deal value, which covers investments in early-stage, high-growth companies, plunged 36%, marking the steepest decline among investor types.

Strategic M&A activity in the region – defined as deals by corporate buyers rather than financial investors – declined by 12%, from US$57 billion in 2024 to US$50 billion in 2025.

However, overall deal activity remained steady. The volume of deals valued at over US$30 million increased 2% year on year, while the volume of strategic deals valued at more than US$30 million grew by 1%, from 189 deals in 2024 to 191 deals in 2025.

Sector performance: energy surge, manufacturing decline

Strategic deal value of advanced manufacturing and services, the largest industry for M&A in Southeast Asia, decreased 21% year on year.

Globally, the sector led the rebound, with US$856 billion in deal value.

In contrast, the energy and natural resources sector, the second-largest industry in the region for M&A deals, recorded a 13% increase in deal value.

This regional growth aligns with global patterns, with the report noting that oil and gas companies have consolidated to capture scale and integrate value chains.