Commercial Due Diligence Remains Critical to Successful Mid-Market M&A Transactions
Jakarta – Global mid-market transaction activity experienced a decline in 2025 due to increased geopolitical tensions and trade tariff uncertainty.
Nevertheless, a number of delayed transactions remain in the pipeline as investors chose to wait for more favourable conditions.
According to the BDO’s M&A Horizons 2026 report, the decline in global mid-market transaction activity in 2025 was also influenced by limited strategic planning horizons amid economic uncertainty. However, this condition does not fully reflect a permanent slowdown.
“Many business owners and investors continue to maintain their transaction plans and choose to wait for more stable market momentum before proceeding with deals,” said BDO’s Partner (Advisory) in Indonesia, Marvin Camangeg in a statement on Monday, 16 March 2026.
In the Asia-Pacific region, mid-market transactions increasingly became the primary focus of private equity activity. Investors tended to prioritise smaller-scale transactions focused on operational improvements rather than large-scale acquisitions.
In Southeast Asia, private equity recorded investments of approximately US$9.1 billion through 59 transactions in 2025, reflecting an increasingly selective investment environment.
Indonesia itself remained an active M&A market with a value of approximately US$6.2 billion from 102 transactions, demonstrating strong investor interest despite more cautious capital deployment.
According to him, consumer growth and accelerated digital adoption continue to attract both domestic and international investors. Meanwhile, sectoral factors such as consolidation in financial services and growing interest in the technology, manufacturing, and sustainable energy sectors further drove transaction activity.
“Going forward, investors will increasingly demand higher due diligence criteria and more creative transaction structures. Should global trading conditions become clearer, transaction flows are expected to rebound, albeit with stricter selectivity levels,” he stated.