Perspective

03 Feb 2026

10 minute read

Successful Sellers: Divestiture Insights and outlook for Asia Pacific in 2026

Deal making in Asia Pacific accelerated in 2025, with continued momentum driven by portfolio rebalancing, carve-outs and take-private transactions.

As we enter 2026, the Asia Pacific region stands at the threshold of a transformative era in mergers and acquisitions (M&A). Across the region, 70% of executives surveyed are considering one or more divestment over the next 12–18 months¹.

Following a landmark 2025, where regional M&A volume surged 33% to hit the $1 trillion milestone, the momentum for growth is undeniable². Driven by an "Innovation Supercycle" and an unprecedented 13 megadeals worth $211 billion, our region has cemented its role as a global engine for strategic repositioning³. While macroeconomic volatility persists in the region and globally, the market is increasingly defined by strategic repositioning, as companies acquire new capabilities and scale as part of their transformation.

Divestitures are an increasingly critical lever in strategy-led portfolio moves, enabling companies to redeploy capital, sharpen operational focus and fund large-scale transformation as part of an end‑to‑end M&A agenda. Deloitte Asia Pacific’s deep dive analysis of more than 2,000 deals shows that companies adopting Transformational M&A — termed “Growth Transformers” — generate 2–3x higher total shareholder returns than peers that pursue only incremental deal value without reshaping their portfolios.

To explore how disciplined divestitures, alongside acquisitions, can underpin a holistic transformation journey and position your organisation as a Growth Transformer, refer to: Transformational M&A: The Growth Transformer’s Playbook.

The outlook for M&A is strong

Japan

Governance-driven transformation

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China

Domestic consolidation and inbound rebound

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India

High-growth vertical scaling

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Australia

Energy transition and asset optimisation

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Asia Pacific M&A momentum underpinned by easing rates, policy reforms and rising activism

Divestitures, carve-outs and take-private deals will be key drivers of M&A growth in 2026. Several factors behind Asia Pacific’s strong 2025 performance are expected to sustain a robust outlook for M&A and divestments in the year ahead:

Monetary policy easing: Central banks across Asia cut interest rates in 2024 and 2025, lowering borrowing costs and reducing barriers to entry for dealmakers.
Pent-up demand: After years of subdued activity, corporations pursued transactions to transform businesses, rebalance portfolios and pursue growth opportunities.
Government policies: China implemented policies to create national champions and enhance profitability, particularly through bank recapitalisations and real estate market stabilisation. In contrast, capital efficiency disclosure regulations on the Tokyo Stock Exchange have been a key driver of divestments and take private transactions in Japan.
Investor activism: In 2025, 65 Asia-Pacific companies with a market capitalisation above $500 million were targeted by activist investors — an 81% increase compared to the 2021–2023 average. Japan recorded the highest level of activist activity, accounting for 86% of regional campaigns and nearly half (49%) of global activity. This growing activist pressure is prompting more publicly listed companies to consider management buyouts.

Key takeaways

Deloitte recently surveyed 373 Asia-Pacific executives on divestment and carve-out successes and failures – covering Corporates and Private Equity. For Asia Pacific, three key take-aways for dealmakers stand out:

1. Seller success depends on planning and clarity

Overall, the most impactful factors influencing divestiture valuations and transaction timing for Asia Pacific sellers and buyers are deal preparation quality, separation clarity, financing certainty, and navigating regulatory environments:

The dual role of deal preparation: Quality financial and tax diligence information is a necessary condition for a premium valuation but its absence acts as a near-certain penalty. Proper preparation doesn't guarantee a high price, but poor preparation almost guarantees a low one.

Many sellers focus on competitive factors in a divestment process, whereas most buyers focus on strategic fit: Sellers prioritise external leverage, market mechanics and certainty for maximising value. Buyers prioritise alignment with internal value creation, long-term goals and execution feasibility.

External market conditions are the most volatile determinants of value: While preparation and internal execution set the baseline, market conditions ultimately drive whether the realised price exceeds or falls short of expectations.

2. Future divestiture success requires execution certainty

A rigorous focus on regulatory compliance, execution certainty, and detailed pre-sale preparation is critical in Asia Pacific’s fast growing and complex carve-out environment:

Master regulatory and tax risk management pre-deal: Success is heavily dependent upon mitigating regional regulatory and tax complexity, which is often a significant risk and a key decision point. Cross-border buyers can underestimate the time and nuance required to align on governance, especially when acquiring carved-out units from family-owned or conglomerate structures. SOE divestitures in China are politically sensitive and approval can involve many steps.

Prioritise speed and execution certainty over maximum deal price: Price is always essential. However, Asia-Pacific sellers place a high value on a buyer's ability to execute quickly and reliably, suggesting that certainty of closing may outweigh achieving the absolute peak valuation. However, in markets like Japan and South Korea, planning needs to account for hierarchical decision-making and consensus-driven cultures (including unions and boards).

Ensure flawless financial and operational separation readiness: Given that most Asia-Pacific transactions involve carve-outs of complex entities, detailed, high-quality preparation and clear separation plans are non-negotiable requirements for achieving favorable valuations and efficient closing timelines.

3. Strong deal appetite confronts continued market challenges

Overall, the 2026 outlook for divestments, carve-outs and take-private deals in Asia Pacific is positive but subject to macroeconomic stability, continued monetary easing, resolution of trade tensions and regulatory clarity across key markets:

Continued, measured deal flow focused on portfolio rebalancing and optimisation: Asia Pacific companies expect continued transaction volume, with a focus on a few key deals rather than broad market activity. This activity is expected to be driven primarily by portfolio optimisation and external interest.

Heightened regulatory and talent pressures: Regulatory environments and internal resource constraints are expected to remain major factors influencing transaction activity and complexity in 2026.

Increased exploration of strategic alternatives: The majority of Asia Pacific companies are moving beyond traditional M&A structures and actively considering joint ventures and alliances as alternatives to full divestitures or carve-out acquisitions.

Integration of advanced technology (AI/Gen AI) in divestment process: Future transaction execution is set to become increasingly technology-intensive, with the surveyed executives expressing high confidence in using AI tools to support dealmaking.

For more information on how to become a successful seller, please review Deloitte 2026 Global Divestiture Outlook.

Endnotes

1 Deloitte, 2026 Global Divestiture Outlook

2 Mergermarket, Year of the Megadeals – M&A Highlights 2025, December 2025.

3 Ibid.

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Successful Sellers: Divestiture Insights and outlook for Asia Pacific in 2026