Transformational M&As More Than Double Shareholder Returns

Companies that place mergers and acquisitions (M&As) 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 research, The Growth Transformer’s Playbook.

Deloitte’s analysis of over 2,000 major deals since 2015 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.

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%.
• Artificial intelligence (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 which 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 the research, the new vanguard of transformational M&A leaders excels 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.

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.

“M&A today is about making purposeful and strategic moves that accelerate transformation,” says David Hill, Deloitte Asia Pacific’s CEO. “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 startup 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.

Says Muralidhar M.S.K., Deloitte Southeast Asia’s Strategy, Risk & Transactions Leader, “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.”