Market Insights Financial Corporate Finance

Mergers and Acquisitions - Laos

Laos

The transaction value in the Mergers and Acquisitions market is projected to reach US$74.67m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -32.78% resulting in a projected total amount of US$50.19m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$31.26m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Laos has been steadily growing in recent years.

Customer preferences: Companies in Laos are increasingly looking to expand their market share and diversify their business portfolios through mergers and acquisitions. This trend is driven by a desire to strengthen their competitive position, access new technologies and expertise, and capitalize on emerging market opportunities.

Trends in the market: One noticeable trend in the M&A market in Laos is the rise of cross-border deals with foreign investors. This trend reflects the growing confidence of international companies in the potential of the Laotian market and their willingness to invest in local businesses. Additionally, there is a noticeable preference for mergers and acquisitions in the technology and renewable energy sectors, indicating a strategic shift towards sustainable and innovative industries.

Local special circumstances: Laos' strategic location within the ASEAN region and its favorable investment policies have made it an attractive destination for M&A activities. The government's efforts to improve infrastructure, streamline regulations, and promote foreign investment have created a conducive environment for mergers and acquisitions. Moreover, the country's stable political climate and steady economic growth have instilled confidence in both local and foreign investors.

Underlying macroeconomic factors: The economic growth of Laos, driven by robust tourism, agriculture, and manufacturing sectors, has contributed to the expansion of the M&A market. As the country continues to modernize its economy and improve its business environment, opportunities for mergers and acquisitions are expected to increase. Additionally, the government's focus on sustainable development and green initiatives has attracted investors looking to participate in environmentally friendly projects.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.