M&A Activity to Significantly Increase In Asia-Pacific This Year, Survey Finds

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By Yin Wilczek

June 16 — Corporate restructuring is anticipated to increase dramatically across the Asia-Pacific in the next 12 months, a new survey finds.

In a poll of 150 bankers, lawyers, government officials and fund managers in the Asia-Pacific, AlixPartners LLP found that 93 percent expect the number of corporate restructurings to increase this year.

“That represents a significant uptick” given that only 66 percent of respondents in 2013, and 70 percent of respondents in 2014, felt this way, AlixPartners said.

The survey also found that mergers and acquisitions will be the main vehicle for restructuring, as indicated by 90 percent of the respondents.

This is the third year that AlixPartners has commissioned its survey on the outlook for corporate restructuring in the Asia-Pacific. The survey was conducted by Remark from November 2014 to January 2015.

Global Uncertainty 

According to the survey, the top driver for restructuring in the Asia-Pacific is global macroeconomic uncertainties causing distress in the area. In particular, survey respondents cited the slowdown of the Chinese economy and mounting corporate debt across the region.

The respondents also expect the restructuring to increase in varying degrees across the region, the survey found. The top countries that are expected to see increased restructuring activity are Japan (indicated by 97 percent of the respondents), New Zealand (93 percent), South Korea (87 percent) and Greater China (85 percent).

As to the likeliest forms of restructuring, after mergers and acquisitions, the respondents picked employee layoffs (76 percent), cash flow forecasting (70 percent) and exploration of new markets (70 percent).

To contact the reporter on this story: Yin Wilczek in Washington at ywilczek@bna.com

To contact the editor responsible for this story: Ryan Tuck at rtuck@bna.com

The survey is available at http://www.alixpartners.com/en/MediaCenter/PressReleases/tabid/821/articleType/ArticleView/articleId/1681/Corporate-Restructuring-to-Significantly-Increase-across-Asia-Pacific-According-to-AlixPartners-Experts-Survey.aspx#sthash.cd99D7rn.dpbs.