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Clifford Chance

Clifford Chance

APAC Market Practice in Private Equity

A unique analysis of Asia Pacific trends in transaction terms during 2020

Our APAC Market Practice Survey comprised transactions with private equity and other financial sponsor sellers as well as corporate sellers, and included both auction sales and proprietary deals.

All transactions were led out of our APAC offices but involved a range of cross-border targets across a variety of sectors.

A comparison of the results from this survey and previous surveys shows that the trends in the APAC M&A market continue to be seller-friendly against the backdrop of region-specific trends and market practice unique to the region. The results show that, despite the Covid-19 pandemic, it is still a relatively seller-friendly market in the APAC region. The APAC M&A market is influenced by European and US M&A practices, with the APAC trend sitting between these two market practices in a few areas. However there are still some features that are typical in this region, especially in the use of fixed price mechanism.

Asia Pacific themes

Other key themes discussed in the report include:

Natsuko Sugihara comments on the APAC market

"Although the APAC Private M&A market was impacted by the pandemic in the first half of 2020, when the market bounced back in the summer, the deal terms also returned largely unaffected. We did however note a slight shift towards the UK / Continental European market practices, with an increase in the use of locked box mechanisms, for example. We didn't identify radical changes in the terms post-pandemic and they remain largely seller friendly."