Baker’s reports show Asian business leaders eyeing for shifting supply chain, optimistic about M&A
Baker McKenzie has recently released two reports from its Asia Pacific Business Renewal Series, shedding light on the supply chains and M&A landscape. Reports show that many business leaders are rethinking their supply chain strategies, and expecting robust growth from the M&A deals.
Baker’s survey included 150 business leaders from mainland China and 50 ones from Hong Kong SAR, covering industries of consumer goods, energy, healthcare, manufacturing etc.
Business leaders see trade disputes and increasing protectionism, supply chain disruption, and compliance and shifting regulations on a regional and global scale, as the three leading risking factors.
They are taking various measures to address trade barriers and disruptions to their supply chain, including moving major investment to jurisdictions where barriers remain lower, emphasizing a focus on domestic markets, diversifying supply chain geographies, as well as building in greater flexibility and contingencies to switch supply lines if needed.
In terms of M&A, with Q1 2021 saw 988 deals worth $180 billion, business leaders remain optimistic of the future deal landscape, with 62 percent believing distressed investment opportunities will increase in 2021.
Key drivers of M&A include boosting digital capabilities, expansion for stability, cost considerations, and expectation of more growth.
The hottest M&A sectors are tech and consumer goods, healthcare and life sciences, and the digital infrastructure modernization needs of financial institutions.
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