M&A activity set to soar | KPMG | CN
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M&A activity set to soar

A lens on the Greater Bay Area

Significant opportunities

M&A

The diverse range of industries and strengths across the GBA's cities provides significant opportunities for companies that are looking to enter or build on their existing presence in China.

M&A activity set to soar

As the GBA continues to evolve, businesses operating in, or looking to enter, the market will need to review their medium and long-term strategies to assess how best to capitalise on the many opportunities.

Key deal-making, investment and valuation themes

Greater business participation

The integration of the GBA will facilitate the greater movement of goods, resources and capital, which will support those whose strategy is to increase participation in the opportunities the region presents. Increased investment, collaboration and M&A opportunities are expected to facilitate entry or broader participation in the region. Companies that are not operating in the region may consider investment by acquisition as a viable entry route, and the closer integration of markets in the region will also likely lead to an increase of investment in existing business operations, or the expansion into new markets and locations in the GBA.

Multi-sector investment opportunities

The growth of the GBA will lead to investment and M&A opportunities across all sectors, including infrastructure, financial services and technology. A robust strategy and a comprehensive understanding of how to execute deals in China will be critical. Businesses that are able to adapt to the fast-changing environment – and manage their workforce effectively – will be the ones that will succeed in taking advantage of the investment and deal-making opportunities in the region.

Hub for the Belt and Road Initiative

The development of the GBA is expected to transform the region into a key hub for facilitating China’s Belt and Road Initiative. By combining the competitive advantages of the cities in the GBA – for example, Shenzhen’s high-tech manufacturing and innovation capabilities, Guangzhou and Dongguan’s manufacturing strengths, and Hong Kong’s position as an international finance centre and RMB hub – the region is well-placed to be at the centre of M&A, investment and financing activity. This efficient combination of capital, high-tech, innovation and manufacturing capabilities continues to create a solid foundation for businesses within the region to pursue outbound opportunities.

The KPMG deal-making, investment and valuation proposition

Regional strategy team

Our Deal Strategy teams support our clients in developing robust market entry and M&A strategies to capture opportunities and respond and adapt to changing trends and disruptive forces.

Full suite of deal advisory services

We bring comprehensive experience across the deal cycle to assist with the full range of GBA deal opportunities. This includes assisting with implementing acquisition and divestment strategies, securing financing and funding for investment, handling complex turnaround and business restructuring, carrying out asset valuation requirements and supporting the execution of JV transactions.

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