M&A and Venture Capital Trends in Asia
- Erdinc Ekinci
- May 15
- 5 min read
"M&A activity will be driven by businesses needing to balance growth and geopolitical and supply chain risk right especially after Trump period.” In Asia’s rapidly evolving startup and investment ecosystem, mergers and acquisitions (M&A) have become far more than exit strategies—they are catalysts for resilience, expansion, and innovation.
I had the privilege of sitting down with Siong Yoong, Founder & CEO of VALLARIS™, a seasoned expert in M&A advisory and strategy, to unpack the real forces behind successful M&A in Asia. Our conversation delved into the psychology of deal-making, the future of valuation, and why startup founders need to rethink how and when they approach M&A.
M&A activity has been shaped significantly by the geopolitical and economic environment of the past few years, including the trade policies and market uncertainties experienced during the Trump administration. Businesses today must balance growth ambitions with geopolitical and supply chain risks in this evolving landscape.
Here are the deeper insights and most valuable takeaways from our discussion. 🎥 Watch the full video here:
1. M&A Is a Strategic Relationship—Not a Lifeline
Siong compares M&A to dating—not just a transaction, but a long-term relationship built on shared values, timing, and alignment. Founders should approach acquisition conversations well before they need funding. Waiting until you're out of the runway usually leads to weak negotiation positions and poor post-deal integration.
M&A should be seen as a growth strategy, not a bailout. In today’s dynamic market, where geopolitical risks and competition evolve rapidly, acquisitions allow companies to quickly fill strategic gaps—whether in supply, demand, or capability. Founders who prepare early and engage buyers proactively are more likely to achieve favorable outcomes.
Key Takeaways:
Begin strategic buyer conversations at least 12–18 months ahead of need
Deals are more successful when built on mutual strategic alignment
Think of the buyer as a future partner, not a rescuer
2. Intangible Assets Are the New Value Drivers
More than 90% of the value of S&P 500 companies now stems from intangible assets. For startups, this includes proprietary tech, brand equity, data strategy, and internal processes. Siong emphasized that these should not only exist but also be structured, documented, and defensible.
In M&A conversations, these assets significantly influence valuation and acquisition interest. Strong intangible positioning shows acquirers that the startup has built durable, non-replicable advantages—often leading to premium multiples during negotiation.
Key Takeaways:
A well-structured IP portfolio can increase valuation multiples by 2–3x
Document team expertise, data strategy, and proprietary tech early
Investors and acquirers often pay premiums for strong intangible positioning
3. Asia’s M&A Boom Is a Hedge Against Global Instability
Cross-border M&A activity in Asia is accelerating as companies seek to hedge geopolitical and supply chain risks. The expert explained that the trade tensions and protectionist policies introduced during the Trump administration, along with ongoing global market uncertainties, have prompted many businesses to redirect investments toward fast-growing and more stable Asian economies like India.
M&A has become a strategic tool for companies to diversify their markets and supply chains quickly, avoiding the long lead times required for organic growth. In today’s fragmented global environment, Asia stands out as both a growth engine and a risk mitigation hub.
Key Takeaways:
Cross-border M&A deals in Asia have grown by over 60% since 2020
Buyers are looking for regional diversification and tech integration
Acquisitions are increasingly driven by macroeconomic risk mitigation
4. A Buyer’s Journey Starts with Fear
One of the most compelling insights is that acquirers are often driven more by fear than opportunity. Whether it's fear of disruption, losing customers, or falling behind in innovation, the emotional drivers behind deals are real and strategic.
Startups that understand this dynamic can better position themselves as solutions to these threats. Instead of pitching from a place of growth alone, founders should show how their product or team mitigates risk for the acquirer and secures their market position.
Key Takeaways:
More than 70% of acquisitions are motivated by strategic threat mitigation
Position your startup as a solution to the buyer’s biggest fear
Emphasize how your product or team protects their market position
5. Web3 and the Rise of Token-Driven M&A
As blockchain adoption rises, token-based fundraising and decentralized deal structures are entering mainstream M&A. We noted the emergence of DAOs, smart contracts, and token-based valuations that challenge traditional deal formats.
These models are gaining traction for automating deal execution and aligning incentives without intermediaries. Startups leveraging Web3 principles are pioneering new approaches to structuring partnerships, payments, and governance.
Key Takeaways:
Token fundraising grew 10x between 2021 and 2022
Smart contracts automate milestone payments and escrow without intermediaries
DAOs are pioneering new M&A governance models
6. Telecom Industry as a Template for Transformation
The telecom industry has evolved from being infrastructure-centric to platform-based, incorporating cloud, content, and digital services. This shift as a template for other legacy sectors—like logistics, transportation, and energy—that are ripe for digital overlays and M&A-led consolidation.
Companies in these spaces are no longer just selling infrastructure; they’re building ecosystems that are more scalable and profitable.
Key Takeaways:
Platformization of telecom has driven M&A in fintech and cloud
Similar trends are now emerging in transportation, energy, and logistics
Sectors where digital overlays improve efficiency by 30% are ripe for consolidation
7. Post-Merger Integration Is Where Most Value Is Lost
Poor post-merger integration is responsible for over $2 trillion in lost value globally each year. The biggest reason is not technical—it’s cultural. Deals fall apart when teams don't mesh, communication breaks down, or values misalign.
Integration should not be an afterthought; it must begin at the negotiation table. Successful M&A requires clear expectations, shared vision, and operational readiness across both organizations.
Key Takeaways:
Over 70% of M&A deals fail to meet expectations due to integration issues
Integration planning must begin during the deal—not after
Culture and communication are as important as financial diligence
8. Final Thought: M&A Is a Growth Strategy, Not an Exit Plan
Founders often see M&A as the end of the journey, but Siong reframes it as a powerful growth lever. When startups proactively plan for M&A—building for scale, defining value propositions, and identifying strategic fits—they don’t just make themselves acquirable, they attract acquirers.
The strongest deals emerge when both parties see M&A as a way to unlock mutual upside—not just cash out.
Key Takeaways:
Plan exits 12–24 months in advance to maximize strategic alignment
Build for value, not for sale—but make yourself acquirable
Great companies are bought, not sold
A Big Thank You
A heartfelt thank you to Siong Yoong for generously sharing his knowledge, experience, and practical wisdom. This conversation brought clarity to a complex topic and offered founders and investors a strategic lens through which to view M&A—not just as a transaction, but as a long-term growth strategy.
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