Equiteq’s CEO, David Jorgenson, and Jean-Louis Michelet met with Professor Kevyn Yong (Dean of ESSEC Asia-Pacific and specialist of entrepreneurship) at ESSEC Business School in Singapore to discuss the opportunities and challenges impacting M&A activities in the Asia-Pacific region.
This is the second part of their discussion: How do the differences between regional APAC markets impact M&A activities in the B2B services sector?
There are essentially five sub-regions in APAC, each of them with specific characteristics:
- China, Hong Kong, Taiwan
China is a huge economy, but the services sector is still at a relatively early stage. There aren’t many home-grown companies developed by local entrepreneurs that have reached ‘international investor-grade’. In recent years, however, several large Chinese companies have shown an interest in acquisitions in the region and beyond, with a view to reducing their dependency on their domestic market and gaining international credibility. Hong Kong stands out in this regard, because it’s a vibrant market with established global consultancies.
As an example for China, BlueFocus has managed, through an aggressive acquisition strategy, to boost the topline growth of its digital business, which has accounted for 73% of total group revenue in 2016, doubling the proportion recorded in 2015.