The global mergers and acquisitions (M&A) market in 2025 will witness excitement and Vietnam is no exception to this trend.
More than 500 M&A deals worth over 1 billion USD globally
Recent global M&A transaction trends show a strong recovery in large deals: the volume of transactions worth over US$1 billion increased by 17% in 2024, while the average value of each deal also increased significantly. However, the market picture is uneven, with the number of mid-sized and small-sized deals falling. In addition, some potential surprises could upset the current situation.
The report "PwC Global M&A Trends: Outlook 2025" recently published by PwC analyzed three key factors that could affect M&A activities in 2025 and the driving forces behind the increasing demand for deal execution. For the Vietnamese market, analysts believe that M&A activities are not outside the global trend with vibrant deal activities in specific industries such as healthcare and education.
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| The M&A market has seen a significant increase in the higher-end segment, with more than 500 deals worth more than $1 billion, up from 430 deals in 2023. Illustration photo |
Accordingly, in 2024, the value of deals increased by 5%, mainly due to an increase in the average value of each deal, although the volume of transactions decreased by 17% due to macroeconomic uncertainties around inflation and interest rates, which has constrained M&A activity for small and medium-sized deals. The M&A market saw a significant increase in the higher-end segment, with more than 500 deals worth more than $1 billion, up from 430 in 2023. In addition, "megadeals" increased by 18%, with 72 deals worth more than $5 billion announced in 2024, compared to 61 deals in the previous year.
CEOs are optimistic about their M&A plans in 2025. According to PwC's 28th Global CEO Survey, 81% of CEOs who have made at least one major M&A deal in the past three years plan to make one or more M&A deals in the next three years.
In particular, the report also pointed out the expectation of a more favorable M&A environment for the healthcare sector in 2025. Specifically: In 2025, product shortages, supply chain risks and new policies are driving M&A activities in the healthcare sector. In the pharmaceutical and life sciences sectors, deals are mainly focused on biotechnology to cope with the upcoming expiration of patent exclusivity and divestment of non-core assets to optimize the investment portfolio.
At the same time, these companies are also restructuring their portfolios in the process of innovation. In addition, the increasing interest of private equity funds in medical technology (medtech) and digital health has created many attractive exit opportunities for companies invested by private equity funds. Retail healthcare businesses, selling over-the-counter drugs with the trend of separating into independent legal entities or divesting are also actively participating in the M&A race to quickly transform their business models.
M&A in education and healthcare sectors in Vietnam is expected to be vibrant.
In particular, “by 2025, the M&A market in the Vietnamese healthcare sector is expected to be vibrant, mainly due to the increasing demand for high-quality healthcare services and the rise of the middle class. Private hospitals and specialized medical facilities, especially in the fields of ophthalmology and oncology, will become the focus of M&A activities,” said PwC analysts.
Along with the healthcare sector, the education sector continues to grow and transform. Globally, M&A in the education sector is witnessing strong growth, with the active participation of private equity funds, accounting for 50% to 70% of the total investment portfolio. Education technology (EdTech), especially in the field of digitalization of general and higher education, is the focus of attention. The rapid development of technology and the ever-increasing demand for quality education are driving strong growth in M&A activities in this sector.
In the Vietnamese market, with strong foreign investment incentives and no capital restrictions on investment in educational institutions, M&A in the education sector is becoming extremely attractive. M&A activities in 2025 in Vietnam are expected to be vibrant, driven by investment incentives and growing demand for private education. Strategic partnerships and investments in higher education and vocational training will improve quality and infrastructure. Government support policies will create a favorable environment for both domestic and foreign investors, creating many opportunities for M&A activities.
According to PwC’s 28th annual Global CEO Survey, 53% of CEOs surveyed were “quite” or “very confident” in their company’s growth prospects over the next three years, indicating that they expect current or future actions to increase their company’s revenue. In addition to acquisitions to drive growth, we expect divestitures, including large corporate spin-offs, to drive business transformation.
PwC recommends that in a volatile business environment, investors in the market need to be fully equipped with knowledge and skills to address complex issues, including the impact of artificial intelligence, pressure on investment yields in high valuation and slow growth markets, as well as consider the impact of complex geopolitical factors on deals.
Mr. Ong Tiong Hooi, Deal Advisory Services Leader, PwC Vietnam shared: “Entering 2025, global M&A activities are on the path to a strong recovery, driven by signs of economic improvement and strategic acquisitions. This trend is also reflected in Vietnam, where we have witnessed an increase in deal activity across various sectors. Domestic enterprises are showing a proactive role, leading in high-value deals, while foreign investors are also returning to the market, especially focusing on two potential sectors: healthcare and education. To create successful deals in this dynamic market, investors need a deep understanding of industry trends and a strategic focus on creating core value. Negotiators must always be savvy, monitoring valuations, interest rates as well as geopolitical factors to seize new opportunities.” |
Source: https://congthuong.vn/thi-truong-ma-toan-cau-va-khuyen-nghi-cho-viet-nam-374662.html
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