M&A transactions in Thailand on the road to recovery

Mazars in Thailand’s thought leadership article on M&A transactions in Thailand was recently featured in the media.

23 November 2021

These media include Bangkok Post and Manager Online.

The article outlines that M&A transactions in Thailand are beginning to recover as COVID-19 eases. Thai listed companies are actively entering M&A deals in both Thailand and Southeast Asia as a whole, while international private equity and venture capital investors are active in the Thai market.

According to Mazars' November 2021 report, as of 31 October 2021, 206 deals have been announced and 101 deals have been closed so far in 2021. Of those, almost 77 new deals were announced from July 2021 to October 2021, most of which were in the real estate, software, energy, logistics, healthcare, and hospitality sectors. It is believed that this trend will continue going forward.

Mr. Prasenjit Chakraborty, the financial advisory services partner of Mazars in Thailand, noted that although the number of M&A transactions are clearly increasing in Southeast Asia, from the pricing and legal standpoints, COVID-19 has made M&A more complex.

“We feel that buyers are going to be more cautious before committing their investments going forward. Buyers will be more focused on the due diligence process, including financial, tax, and legal review, to find significant red flags in the target business, which will result in the offered valuation being adjusted or in condition precedents being required in the purchase agreement. In addition, we believe that buyers will be more interested in growth opportunities for target businesses,” he said.

Mazars’ experienced M&A professionals will continue to actively assist clients with end-to-end M&A transaction services covering financial due diligence, commercial due diligence, valuation and financial modelling, negotiations, purchase price allocation, drafting purchase documents, and corporate finance services, as well as providing insight on the ongoing changes in the M&A landscape.

Meanwhile, Mr. Jonathan Stuart-Smith, the Tax Partner of Mazars in Thailand, added that Mazars is able to provide tax, legal and financial advisory services for those interested in making M&A deals.

Our integrated approach includes tax and legal professionals who provide valuable insights on both due diligence and structuring considerations. We can help clients with adjusting the pricing structure to reduce investment risks and increase interest in asset deals, which provide opportunities to enhance value through tax reductions, as well as address other matters to help make our clients’ M&A transactions a success.

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