New Deloitte report shows transformational M&A more than doubles shareholder returns, offers guidance on how businesses can redefine growth in Southeast Asia

SINGAPORE, 6 October 2025 – Companies that place mergers and acquisitions (M&A) at the core of their transformation strategies are outpacing traditional rivals, achieving a 464% increase in shareholder returns – more than twice the S&P 1200 average, according to Deloitte’s latest research, “The Growth Transformer’s Playbook”.

Deloitte’s analysis of over 2,000 major deals since 2015^[1] reveals that “growth transformers” – companies that leverage bold acquisitions, strategic divestments and ecosystem collaborations – are setting the pace for growth in a world of regulatory flux, economic nationalism and technological disruption.

These growth transformers have redefined how to capture value, seize new markets and reinvent business models for the modern world. In Southeast Asia, where the M&A environment is characterised by both structural challenges and new opportunities, Deloitte’s transformational M&A approach offers guidance for business leaders to deliver enduring, significant value throughout each deal.

Key Findings:

• Companies pursuing transformational M&A strategies delivered an average shareholder return of 464%, more than twice the S&P 1200 average of 157%
• AI and advanced technologies are now at the heart of deal strategy, with nearly half of CEOs (47%) prioritising AI investments not just to improve efficiency, but to fundamentally transform business models and accelerate growth
• Having clear synergy goals pays off – companies that systematically identify and deliver synergies with their target companies, not only in terms of cost, but also revenue and strategy, outperform deal targets by an average of 23%
• Businesses focusing on workforce transformation and digital skills report up to 30% higher levels of innovation

Six Key Practices of Growth Transformers

According to Deloitte's research, the new vanguard of transformational M&A leaders excel at:

1. Transformational M&A as a leadership mandate – Integrated, multi-dimensional growth pathways with M&A and strategic collaborations at the core, guided by clear leadership intent and inspiring long-term vision.
2. Maximising value from the portfolio – Maintaining an “always on” portfolio value maximisation mindset, constantly examining their portfolios, optimising costs, seeking innovative growth, and pursuing M&A like activist investors.
3. Transforming while transacting – Embedding transformation imperatives with clear linkages to digital platforms, data infrastructure, and technology capabilities, into both deal strategy and execution from day one.
4. Placing AI and technology at the core – Using advanced technologies not just for cost optimisation and efficiencies, but to redefine business models, create new revenue streams, and capture emerging markets.
5. Power in collaboration – Forming innovative collaborations and partnerships with hyperscalers, startups, and private equity players to fast-track execution, redefine business models, create new revenue streams and capture emerging markets.
6. Future-ready workforce – Developing a resilient and adaptable workforce by driving bold cultural transformation, investing deeply in digital and AI‑enabled skills.

Commenting on the report, David HILL, Deloitte Asia Pacific’s CEO said, “In today’s dynamic environment, geopolitics, shifting supply chains, AI, and sustainability demand truly transformative responses. This extends to M&A.”

“M&A today is about making purposeful and strategic moves that accelerate transformation. Organisations are increasingly managing their businesses as portfolios, continuously rebalancing and making thoughtful choices about where to play and how to win. Transformation is not optional. It is the price of relevance, with inaction the greatest risk of all.” 

M&A Trends in Southeast Asia

Within Southeast Asia, the M&A landscape in 2025 has been shaped by both persistent structural challenges and new opportunities. Wide bid-ask spreads, prolonged exit cycles, and a reluctance among sellers to cede control remain significant barriers in core sectors such as digital infrastructure and renewable energy. Meanwhile, regulatory changes and complex post-merger integration needs, especially around technology and talent, further elevate execution risk.

Despite these challenges, the region continues to attract strong investor interest. Regulatory pragmatism, robust capital inflows, and an appealing domestic demand outlook favour both strategic and financial investors. High-growth sectors such as technology, telecommunications, healthcare, and renewable energy are leading M&A activity in Southeast Asia. Recent market consolidation, narrowing valuation gaps, and improving financing conditions are expected to drive greater deal flow.

Private equity remains a pivotal force, accounting for a substantial share of deal value, particularly in later-stage and start-up investments in Singapore and across the region. While overall private equity deal value has fluctuated due to fewer mega-deals, activity in the technology, financial services, and healthcare sectors remain resilient, with private equity funds adopting a disciplined, value-driven approach and showing preference for mature assets. Trade sales continue to dominate exit strategies as they offer greater speed and certainty compared to initial public offerings (IPOs) within the region, and secondary transactions are picking up to meet growing liquidity needs.

Overall, achieving success in Southeast Asia requires disciplined execution, clear strategic priorities, and proactive management of cultural and integration challenges, with private equity playing a central role in shaping the region’s deal landscape.

Muralidhar M.S.K., Deloitte Southeast Asia’s Strategy, Risk & Transactions Leader, said, “Transformational M&A is the engine that businesses need to power growth. In Southeast Asia, where supply chains, technology and customer expectations are rapidly changing, strategic deals and partnerships enable leaders to reconfigure portfolios and access new capabilities. By applying multiple growth levers, they can move with the speed and scale the region demands – reshaping business models, future‑proofing operations, and creating value that endures well beyond one-off deals.”

Technology and AI at the Core of Transformation

Deloitte’s report also highlights how growth transformers are reshaping their businesses through M&A and collaborations with their ecosystems, using AI and disruptive technology as a transformative force. With nearly half of CEOs prioritising AI, emerging technologies such as generative AI, robotics, quantum computing, and machine-learning platforms are viewed as both threats and enablers of new business models.

Nearly 47% of CEOs surveyed now prioritise AI investments, making intelligent technology central to modern M&A strategies. More than half (52%) of CEOs believe AI will fuel revenue growth, with intelligent technology investments closely aligned to strategic goals for balanced risk and first-mover advantage.

Growth transformers are also reimagining supply chains as strategic engines not only by driving efficiency but creating new offerings like logistics‑as‑a‑service, while using real-time analytics to deepen partner and vendor relationships. Supply chains are gradually evolving from “support functions” into strategic engines of growth and innovation.

Rob HILLARD, Deloitte Asia Pacific's Consulting Businesses Leader, noted, “In Asia Pacific, where markets are evolving at unprecedented speed, transformational M&A is a catalyst for reinvention. It’s about using technology, from automation to AI, not just to optimise, but to reimagine business models and unlock new sources of value. Success demands a portfolio approach to tech investment, ensuring interoperability and resilience to thrive in a region defined by complexity and opportunity.”

Workforce Transformation as the Differentiator

The report also highlights that workforce readiness is as vital as technology in determining transformational M&A success. Organisations that invest in digital skills, adaptability, and cultural resilience see up to 30% more innovation.

Growth‑oriented leaders understand that successful transformation hinges on a resilient, adaptable workforce and culture.  A future-ready workforce, skilled in AI and digital fluency, is now a key differentiator in competitive markets.

Private Equity and Ecosystem Transformation

Deloitte's report reveals private equity firms are shifting strategies amid slower markets and rising borrowing costs. With an estimated US$2.3 trillion in dry powder, funds are moving to drive deep transformation across their ecosystems, targeting companies with untapped potential to reposition entire industries.

The report highlights acquirers that meet or beat synergy goals, on average, achieve 1.3 times the value of their publicly stated cost synergies and in some cases, double. Companies that actively identify, track and deliver synergies outperform deal targets by 23% on average, unlocking significantly greater value than peers.

Commenting on the report, Jiak See NG, Deloitte Asia Pacific’s Strategy, Risk and Transactions Leader added, “CEOs redefining markets today are those bold enough to use transformational M&A as a catalyst for reinvention, acknowledging transformation as a constant, unending journey. They combine strong leadership, a clear vision, and disciplined execution, moving at the speed the market demands. By forging powerful partnerships across an evolving ecosystem – with private equity, hyperscalers, startups, and cross-sector peers – these growth transformers are not just capturing short-term value; they are building enduring, purpose-led value and reshaping industries through technology-driven business model transformation, fostering a human-technology culture.”

To access the full report and learn more about the findings, please visit https://www.deloitte.com/southeast-asia/en/services/consulting/perspectives/asia-pacific-the-growth-transformers-playbook.html

^[1]Deloitte’s extensive research, drawing on a decade of M&A from 2015 to 2024 inclusive, provides evidence that the sophisticated strategies now formalised under the Transformational M&A playbook have consistently been employed by what we term ‘growth transformers,’ leading to significantly higher value creation. This study encompassed over 2,000 deals across various regions (North America, South America, Europe, and Asia-Pacific) and sectors (technology, media, and telecoms; energy, resources, and industrials; financial services; life sciences and healthcare; and consumer).