The Role of Commercial Due Diligence in the Success of Mid-Market M&A Transactions
Global mid-market transaction activity experienced a decline in 2025 owing to escalating geopolitical tensions and trade tariff uncertainty. Nevertheless, a number of delayed transactions remain within the pipeline as investors prefer to await more conducive market conditions.
According to BDO’s M&A Horizons 2026 report, the downturn in global mid-market transaction activity in 2025 was also influenced by limited strategic planning horizons amid economic uncertainty. However, this situation does not entirely reflect a permanent deceleration. Many business owners and investors continue to maintain their transaction plans and have chosen to await more stable market momentum before proceeding with agreements.
In the Asia-Pacific region, mid-market transactions have increasingly become a primary focus of private equity activity. Investors tend to prioritise smaller-scale transactions focused on operational improvement over large-scale acquisitions.
In Southeast Asia, private equity recorded approximately US$9.1 billion in investments across 59 transactions in 2025, reflecting an increasingly selective investment environment.
Indonesia itself remains an active M&A market with a value of approximately US$6.2 billion from 102 transactions, demonstrating sustained investor interest despite more cautious capital deployment.
Consumer growth and accelerating digital adoption continue to attract both domestic and international investors. On the other hand, sectoral factors such as consolidation in financial services and increasing interest in technology, manufacturing, and sustainable energy sectors have supported transaction activity.
BDO’s Advisory Partner in Indonesia, Marvin Camangeg, believes that investors will increasingly demand higher due diligence criteria and more creative transaction structures going forward.
“Should global trade conditions become clearer, transaction flows are expected to recover, albeit with a stricter degree of selectivity,” he stated.