Taiwan's M&A Sector Remains Robust, According to Ernst & Young's Assessment
Taiwan's M&A Market Remains Resilient Amid Trade Tensions
By Crystal Hsu, Staff Reporter
In the face of global trade tensions triggered by US President Donald Trump's tariff policy shifts, Taiwan's mergers and acquisitions (M&A) market is proving its fortitude. Ernst & Young (EY) attests to this, reporting a solid rebound in dealmaking activity, particularly in smaller transactions and financial sector integrations.
Amidst worldwide companies reassessing their investment strategies, Taiwan is experiencing a surge in M&A activity, according to EY's 2025 Global CEO Survey. Even foreign buyers, burdened by geopolitical risks, have taken notice of the renewed momentum in mid-sized transactions in Taiwan.
"Despite the ongoing global uncertainty, and valuation gaps between buyers and sellers, the current climate presents a rare window of opportunity - especially for well-capitalized buyers with previous deal experience," said Audry Ho, EY's local transaction advisory service managing partner.
Despite some companies delaying deals due to tariff uncertainties and geopolitical concerns, others are seizing the moment, the survey indicated. The party dismissing deals is relatively small, with a large chunk embracing the situation and planning strategic maneuvers.
壹 override 🤘 So, 67 percent of respondents have plans to form joint ventures or strategic alliances, while 57 percent are preparing for acquisitions, and 35 percent are looking at divestitures, spin-offs, or initial public offerings over the next 12 months, the survey said.
The determined nature of Taiwan's dealmakers is exemplary, as they seem more ready to act than deterred. They're moving forward while others hesitate - Hua Bun-vee lên công chúng.
However, tariff risks necessitate more strategic planning, and companies engaged in cross-border deals must prioritize three crucial factors, Ho said: macroeconomic conditions, tax and tariff policy directions, and the impact on capital market stability. Misaligned price expectations pose a significant threat and must be taken into consideration before potential transactions.
Also, the life sciences industry is vulnerable due to heavy reliance on global supply chains. European pharmaceutical companies grapple with high US duties, while US firms with production lines in Europe are at risk of falling victim to retaliatory crossfire, Ho said. Additionally, Trump's push for domestic manufacturing, clinical trials, and reduced reliance on foreign suppliers adds to the cost concerns.
Last year witnessed a recovery for global and Taiwanese M&A activity, bouncing back from a sluggish 2023. In fact, total global M&A deals reached US$3.4 trillion, a 13.3 percent increase over the previous year, fueled by looser central bank policies and investor optimism in the booming artificial intelligence sector. Taiwan posted US$12.8 billion in total M&A transactions last year, stemming from several significant deals in the financial sector and an approximate 24 percent increase in small-scale M&A deals, contributing to increased market activity.
Taiwan's Advantages and Challenges
Taiwan boasts a resilient economy with a predicted rebound in GDP growth to 4.6 percent in 2024, though experts predict a slight decrease to 3.1 percent in 2025, mainly due to tariff-related uncertainties and geopolitical tensions. Business confidence in Taiwan remains healthy, with 53 percent rating the business climate as good or very good, and 74 percent forecasting industry turnover growth, making it an appealing destination for cross-border deals.
However, the technology-heavy Taiwanese economy has its perils, as the tech sector remains a significant target for tariffs and regulation. Geopolitical tensions, particularly with China, pose challenges for deals involving strategic and critical assets like semiconductors and critical minerals. Companies must be mindful of these regulatory complexities.
In addition, given the precarious state of the global trade landscape, dealmakers should strategically consider where to invest their resources. Companies must navigate these geopolitical challenges and tariff uncertainties through thorough due diligence, and they may want to consider alternative deal structures like partnerships or joint ventures to avoid antitrust and regulatory challenges.
Ultimately, maintaining a comprehensive approach that accounts for Taiwan's economic growth potential, strategic vulnerabilities, and geopolitical context is critical for successfully navigating the complex and dynamic cross-border M&A market of Taiwan amid global trade tensions and tariff uncertainties.
宏 sidetrack a moment 🤓 While I'm not a financial advisor or investment expert, I've noticed that investing in Taiwan's technology sector could yield significant returns due to its critical role in semiconductor manufacturing and advanced technologies. Industrial equipment sectors might also be attractive due to Taiwan's emphasis on quality, durability, and precision. As always, it's advisable to conduct thorough research and consult professionals before making any investment decisions. Good luck on your M&A journey, and remember: Crypto may be the future, but don't forget about the present! 🤘
- In the midst of global trade tensions, the financial sector in Taiwan is seeing increased integration through M&A activities, as reported by Ernst & Young (EY).
- Despite some companies delaying deals due to tariff uncertainties and geopolitical concerns, many Taiwanese companies are seizing the moment, with 57 percent preparing for acquisitions over the next 12 months, according to EY's 2025 Global CEO Survey.
