What has been the impact of the financial crisis on Asian M&A deals?
2008 was clearly a traumatic year for the markets and those in it. In that context, it was near impossible for CEOs and their teams to price an M&A deal and to fully factor in the risks. But many management teams see opportunity in crisis; and crisis doesn’t make a strategic deal less strategic. So I would say that some of the deals that might have been done have instead been deferred and are likely to be reviewed as economic visibility improves. Indeed, the continued reduction in corporate valuations, and the sheer scale of last year’s market turbulence, means that vendor and buyer price expectations will converge around realistic levels quicker than usual in a downturn. Many potential acquirers are waiting for the conclusion of the year-end reporting season to see 2008 results, 2008 balance sheets and 2009 prospects—once potential acquirers have a better visibility on earnings, I think announced activity levels will pick up. What is your outlook for Asia outbound M&A in 2009 and beyo
