APAC M&A Outlook Q2 2026: Key Trends

Asia Pacific M&A activity in Q2 2026 is tracking above prior-year levels across most sub-regions, with particularly strong deal flow in Australia, India, and Japan. Amafi advises sell-side M&A across Asia Pacific, and this quarterly outlook draws on our transaction pipeline and market observations across the region.

The headline story is continuity: the structural drivers that have shaped APAC M&A since 2023 remain in place. Succession-motivated selling, PE-driven consolidation, and corporate carve-outs continue to generate deal supply. On the demand side, PE dry powder in Asia Pacific remains elevated — Preqin estimates that Asia Pacific-focused PE funds hold over $400 billion in uncalled capital — and strategic acquirers are rebuilding M&A budgets after two years of caution.

The primary headwind is geopolitical uncertainty. Greater China-related transactions remain suppressed relative to 2018-2021 levels, as buyers continue to manage China-related portfolio risk. This is redirecting capital towards ASEAN, Australia, India, and Japan — markets that offer Asia Pacific exposure without mainland China concentration risk.

Australia: PE-Driven Consolidation Continues

Australia remains the most liquid mid-market M&A environment in Asia Pacific for English-speaking sellers. The combination of a mature PE ecosystem, professional advisory infrastructure, and a large base of profitable SMEs creates predictable deal flow.

Q2 2026 deal activity is concentrated in:

• Healthcare roll-ups — GP practices, allied health (physiotherapy, psychology, occupational therapy), dental, and aged care businesses continue to attract PE buyers running active consolidation platforms. Healthcare M&A multiples for GP and allied health range from 5–9x EBITDA depending on size and integration readiness.
• Accounting firm acquisitions — The PE-backed consolidation of Australian accounting practices has accelerated. Firms in the $5–30M revenue range continue to attract premium valuations from PE-backed roll-up platforms, with typical accounting firm multiples of 5–8x EBITDA or 0.8–1.2x revenue.
• Technology and managed services — Australian IT managed service providers and software businesses remain highly sought by domestic PE and US strategic acquirers building APAC capability. Multiples of 6–12x EBITDA are achievable for businesses with strong recurring revenue.
• Professional services — Engineering, environmental consulting, and advisory businesses benefit from infrastructure investment (NDIS, defence, renewable energy) creating sustainable demand backlogs.

A 2025 Bain & Company review of Asia Pacific PE activity noted that Australia accounted for approximately 18% of APAC PE deal volume by count, disproportionate to its share of regional GDP — reflecting the deep PE ecosystem and seller-friendly M&A environment.

Japan: Structural Supply Meets Growing Buyer Appetite

Japan’s M&A deal flow continues to expand, driven by the confluence of the succession crisis and corporate governance reform. The succession pipeline — over 600,000 SMEs facing ownership transition without clear successors — is generating motivated seller flow that shows no sign of abating.

Corporate carve-outs have become an increasingly significant source of Japanese deal flow. The government’s focus on improving corporate valuations (an agenda sometimes called the “Value-Up Program Japan” analogue) has intensified pressure on listed conglomerates to divest non-core subsidiaries. Several major listed companies have announced portfolio reviews, and PE advisors report strong pipeline of carve-out opportunities in manufacturing, services, and technology.

For foreign buyers, Japan in Q2 2026 represents a rare combination: structural supply of quality businesses, motivated sellers, and valuations that remain attractive on a global comparison basis. The yen environment has partially normalised from 2023-2024 extremes, but Japanese assets still offer relative value versus comparable European or North American businesses.

Deal timelines remain longer than elsewhere in APAC — typically 12–18 months — and cultural fluency remains a prerequisite for successful execution. Buyers who build relationships before launching formal processes consistently achieve better terms than those who arrive with price sheets.

India: Mid-Market Acceleration

India’s M&A market entered 2026 having set a new record for deal value in 2025 at over $90 billion. Q2 2026 continues the momentum, with PE exit activity and technology sector consolidation driving most of the volume.

The most significant development is the maturation of India’s PE exit cycle. Funds that deployed capital in 2019-2022 are now seeking exits, creating a supply of PE-backed companies that are better prepared for sale processes than typical founder-owned businesses. PE-backed companies in India have stronger financial reporting, governance structures, and management depth — all characteristics that shorten due diligence and reduce execution risk for buyers.

The McKinsey Global Institute’s 2025 India Investment Report projects India’s digital economy to reach $1 trillion by 2030, driving sustained M&A demand in technology, fintech, and digital infrastructure. Cross-border inbound deals — particularly from US and European technology companies building India capability — are contributing to elevated multiples in the technology sector.

India regulatory approval timelines have improved under NCLT reforms, with competition clearance now averaging 3–6 months for non-complex transactions, down from 6–12 months in earlier years.

Singapore: ASEAN Platform Consolidation

Singapore’s role as the M&A hub for Southeast Asia strengthens with each year. Q2 2026 activity is driven by companies using Singapore structures to consolidate ASEAN operations, particularly in Indonesia, Vietnam, and Thailand.

Key themes include:

• Logistics and supply chain consolidation — ASEAN’s growing e-commerce market is driving consolidation among regional logistics operators, with Singapore-listed companies and PE funds acquiring country-specific operators to build integrated regional networks
• Financial services — wealth management businesses and licensed financial advisors are consolidating under regulated structures, with several significant transactions in Q1 2026 involving Singapore-based wealth platforms acquiring regional books of business
• Education technology — ASEAN’s EdTech sector continues to attract M&A interest as platforms build regional coverage across diverse markets

Singapore’s no capital gains tax environment and DTA network continue to make it the preferred jurisdiction for structuring exits from ASEAN assets.

South Korea: Value-Up Drives Corporate Carve-Outs

South Korea’s Corporate Value-Up Program is producing measurable M&A supply. Listed conglomerates, under shareholder pressure to improve return on equity, are divesting non-core subsidiaries at an accelerating pace. Q2 2026 carve-out deal flow includes manufacturing, retail, and services businesses that were previously embedded in chaebol structures.

PE participation in Korean M&A has grown significantly. Korean PE funds — historically smaller and more conservative than regional peers — have scaled, and international PE funds have deepened their Korea focus. This creates more competitive buyer processes for motivated sellers, resulting in stronger valuations than existed three to five years ago.

Korean outbound M&A remains an important theme. Korean corporates — particularly in semiconductors, secondary battery manufacturing, and consumer brands — are actively acquiring technology and manufacturing capability in North America, Europe, and Southeast Asia.

Valuation Multiples: Current Market Snapshot

Based on transaction activity observed across Amafi’s advisory pipeline and publicly available comparable transactions, the following EBITDA multiple ranges represent current mid-market deal conditions in APAC:

Sector	Australia	Singapore/HK	India	Japan
Technology/SaaS	7–14x	7–15x	8–18x	6–12x
Healthcare services	6–10x	7–11x	7–12x	5–9x
Professional services	5–9x	5–9x	5–9x	4–7x
Accounting practices	5–8x	5–8x	5–8x	4–7x
Staffing/recruitment	4–8x	5–8x	5–8x	4–7x
Manufacturing	4–7x	4–7x	5–8x	3–6x
Financial services	6–12x	7–13x	8–15x	5–10x

Sources: Amafi transaction pipeline, Mergermarket APAC Deal Monitor Q1 2026, PwC Deals Asia Pacific Trends 2026, Bain Asia Pacific Private Equity Report 2025. Ranges represent mid-market deals ($10M–$500M enterprise value). Individual transactions may fall outside these ranges based on business quality, growth profile, and competitive process dynamics.

A DeloItte analysis of APAC mid-market transactions (2025) found that businesses sold through competitive auction processes achieved 18–24% higher EBITDA multiples than businesses sold through bilateral negotiations — demonstrating the value of running a structured, competitive process with qualified advisor support.

What This Means for Business Owners Considering a Sale

Q2 2026 represents a constructive environment for sellers in most APAC sectors. Key observations:

1. PE demand remains elevated — Asia Pacific PE funds have record dry powder and active mandates in healthcare, technology, and professional services
2. Strategic buyers are re-engaging — corporate acquirers that paused M&A programs in 2023-2024 are back in market, competing with PE funds for quality assets
3. Multiples have partially compressed from 2021-2022 peaks — but remain well above pre-COVID levels. Quality businesses with recurring revenue, management depth, and diversified customer bases are still achieving premium multiples
4. Preparation quality matters more than ever — buyers are more disciplined in due diligence, and businesses with clean financials, documented systems, and credible management teams command premiums

The businesses that achieve the strongest outcomes in Q2 2026 are not those that time the market perfectly. They are those that start the preparation process 12–24 months before sale, address structural value detractors, and run competitive processes with the full universe of qualified buyers.

Book a valuation meeting with Amafi to understand your business’s current market positioning, what buyers would pay in Q2 2026, and what you can do before going to market to maximise your outcome.

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Amafi is an M&A advisory firm specialising in sell-side transactions for business owners across Asia Pacific. We charge a 2% success fee — no retainer, no monthly fees. You pay nothing unless a deal completes. Learn more about how we work.