Chi Square Economics’ Post

"Private equity-related dealmaking in Japan jumped last year, as low interest rates and an ample supply of targets helped make the country the only market in the Asia-Pacific region to see growth, according to Bain & Co," Bloomberg reports. "Deal value in Japan last year nearly tripled compared with the annual average from 2018 to 2022, rising 183%, a report from the consultancy showed on Monday. Comparatively, Asia-Pacific deals fell 35% in the same period to the lowest level since 2014." "Japan’s momentum is expected to continue into 2024 as companies face pressure to improve shareholder value and become more willing to work with buyout firms to sell off businesses or go private, said Sebastien Lamy, the Tokyo-based co-head of Bain’s APAC private equity practice." "“We have to put Japan in a broader context which goes beyond interest rates,” Lamy said in an interview. “It’s a multi-year trend.”" Bloomberg: https://lnkd.in/gxACzRJb Link to Bain & Co report: https://lnkd.in/gdFj3JuM

❓𝐃𝐢𝐝 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐭𝐡𝐚𝐭 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬 𝐩𝐥𝐚𝐲 𝐚 𝐜𝐫𝐮𝐜𝐢𝐚𝐥 𝐫𝐨𝐥𝐞 𝐢𝐧 𝐦𝐚𝐭𝐭𝐞𝐫𝐬 𝐜𝐨𝐧𝐜𝐞𝐫𝐧𝐢𝐧𝐠 𝐩𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐯𝐞 𝐜𝐡𝐞𝐜𝐤𝐬 𝐨𝐧 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐜𝐨𝐧𝐜𝐞𝐧𝐭𝐫𝐚𝐭𝐢𝐨𝐧𝐬 (𝐞.𝐠., 𝐦𝐞𝐫𝐠𝐞𝐫𝐬 𝐚𝐧𝐝 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧𝐬)? Economics provide an analytical framework and assessment tools to assess the potential impact on market competition and consumer welfare. Economists use various models ⚛ and empirical analyses 📊 to evaluate potential effects on prices, product/service quality, innovation intensity, barriers to market entry, and overall consumer welfare. At Trojan Economics, we recognize the importance of detailed and convincing economic analysis in business mergers and acquisitions. Our experience in preventive control and our market expertise in Cyprus allow us to offer comprehensive support to businesses during the merger or acquisition notification process. Find more information about our services regarding business concentrations here: 🔗 https://lnkd.in/evXeM8MB #MergerControl #CompetitionEconomics #Competition #ConsumerWelfare #BusinessStrategy #TrojanEconomics https://lnkd.in/evXeM8MB

🔗 Recently, I had the pleasure of speaking with Charles Newbery for LatinFinance about the evolving M&A landscape in Latin America. We discussed the opportunities and challenges that come with navigating this dynamic market, and I highlighted the importance of understanding local cultures, customs, and regulations to successfully execute M&A deals in the region.   Despite the global uncertainty, Latin America’s potential for growth and investment remains strong, with Mexico emerging as a particularly attractive destination for business.   For those interested in the full insights and our discussion on the future of M&A in Latin America, be sure to check out the interview in LatinFinance’s latest issue here: https://lnkd.in/ezbvmiTD   Read the KPMG 2023 M&A in Latin America Survey to learn how companies and investors can navigate the risk-reward dynamic and take advantage of the growing opportunity here: https://ow.ly/iGjf50QRimn   #mergersandacquisitions #latinamerica #latam #investmentopportunities #kpmg #advisory

RBB is set to bolster its global footprint with a move into Latin America. RBB is in the process of establishing an office in Santiago, Chile, which will provide a regional hub to deliver a comprehensive service to clients both in Chile and across Latin America. As part of this strategic expansion, we are delighted to announce the hire of Vicente Lagos, the recent Chief Economist and acting Head of Mergers at the Fiscalía Nacional Económica (FNE) in Chile, who will be based in Santiago. We have also recently promoted to Principal Manuel Marfan, a Chilean national who has extensive experience advising both in Europe and across Latin America, and who will also be actively involved in the project. RBB's Adrian Majumdar comments: “We have been doing more and more work in Chile and Latin America over the years. The opening of our office in Chile is a natural next step, and we are very pleased with both the arrival of Vicente and the promotion of Manuel. This will be RBB’s first office in the region and so is an exciting development.” This move into Latin America is the latest in a period of significant global growth for RBB. Over the past 18 months, we have opened five new offices across Helsinki, Milan, Oslo, Singapore and Sydney and now have 27 Partners and 230 competition economists in 14 offices worldwide. #CompetitionEconomics #RBBEconomics

#Chinese M&A deals in U.S. reach 18-year low in first half of 2024 First six months of deals by #China Inc. worth $94m, according to Dealogic Chinese deal activity in the U.S. for the first half of the year sank to the lowest since 2006 as fraught relations between the two countries fuel tighter scrutiny of Chinese companies and further decouple the two economies. Chinese businesses made seven such deals, worth a combined $94 million, according to available data from financial analytics firm Dealogic. The #Nasdaq-listed Coherus BioSciences was acquired by Nanjing King-Friend Biochemical Pharmaceutical and Chicago-based Meitheal Pharmaceuticals for $40 million in June. The value of Chinese deals in the U.S. so far this year is much lower than the same period last year, when China reopened its borders bidding farewell to #COVID-zero, which was valued at $193 million. The number and value of deals by Chinese companies in the U.S. have declined steadily since peaking in 2016. Their mergers and acquisitions activity totaled $3.73 billion for all of 2023, less than half the value of deal activity pre-pandemic in 2019 when M&A transactions were valued at $8.9 billion. The decline of Chinese deals in the U.S. contrasts with the positive outlook for American deal volume and strong U.S. economic activity. EY-Parthenon Deal Barometer projects corporate M&A deal volume in the U.S. to rise 20% in 2024, following a 17% contraction in 2023. Thanks to Pak Yiu , Echo Wong and Nikkei Asia for the full article with more background and insights via the link below 💡🙏👇 https://lnkd.in/erk5G_NK #semiconductorindustry #semiconductor #semiconductors #investments #stockmarket #money #technology #tech #innovation #chip #ai #it #usa

Mergers and acquisitions (M&A) transactions can significantly influence economies by reshaping industries, driving financial landscapes, and potentially creating synergies that lead to growth and innovation. However, they also pose challenges such as regulatory scrutiny and impacts on competition and employment.

We would like to thank Kathimerini and journalist Despina Konti for the opportunity to talk about the Group's strategic plan and investments for the next 5 years. Kyriakos Sarantis, Charmain of the Board of Directors, highlighted the business agenda of the Group, which includes organic growth, new products, investments and acquisitions within the Group’s footprint. Further information can be found in: https://lnkd.in/dp-HRycF

Can it be a Good Idea to acquire companies through horizontal or vertical acquisitions ,when the economy of a country and overall business is depleting. Few reasons why it can be a good idea and few challenges. Acquiring a business in a country facing widespread economic challenges can be a double-edged sword. Here are key considerations: 1. **Market Valuation**: Businesses may be undervalued during economic downturns, presenting potential bargains for buyers with a long-term vision. 2. **Industry Analysis**: Some sectors may be more resilient or poised for recovery sooner than others. Targeting these industries can mitigate risk. 3. **Financial Resilience**: Ensure you have the financial stability to weather ongoing challenges. Cash reserves and access to capital are critical. 4. **Turnaround Potential**: Evaluate the potential for turning the business around. Can you bring in new strategies, technologies, or management to drive growth? 5. **Regulatory Environment**: Be aware of any government policies, incentives, or changes that could impact business operations positively or negatively. 6. **Economic Forecast**: Consider expert economic forecasts for the country. A projected recovery can justify acquisitions, while a prolonged recession might warrant caution. 7. **Diversification**: Acquiring a business in a struggling economy can diversify your portfolio, but ensure it complements your existing operations and risk profile. 8. **Local Partnerships**: Building relationships with local stakeholders can provide insights and support that are critical in navigating a challenging business environment. In conclusion, while there are potential opportunities in acquiring businesses during economic downturns, it requires careful analysis, strategic planning, and robust financial backing. Thorough due diligence and a clear understanding of the risks and opportunities are essential. #lagosbusinessschool #strategy #africa #ghana #propack #nigeria #moh #ceos #directors #turnaround #nigerianeconomy #gbo #lagos #deloitte #mergers #acquisions #europeanbusiness #takeovers

A very interesting article from my teammate Pei Wen Ng 黄佩雯 giving you the pulse of the acquisitions scene in Southeast Asia - especially as it pertains to family owned enterprises.

Enjoying the sunny vibes of Abu Dhabi, I spend sometime reading Bain & Company’s Global M&A Report 2024. This is a great analysis of the region’s M&A landscape. Here are my key takeaways: The Backlog Effect: A large number of assets are expected to hit the market in 2024, creating a bustling environment for M&A activities. Strategic Divestitures: Companies are looking to streamline their portfolios by selling off non-core assets, while private equity is set to capitalize on mature investments. Consolidation Trends: The market is gearing up for consolidation deals aimed at scaling operations, which will precede a shift towards investing in capabilities for growth. I am really bullish on the region and looking forward to meet my old colleagues and make new friends during my stay. #MergersAndAcquisitions #BusinessInsights #InvestmentTrends #AbuDhabi Bain & Company