Mid-market M&A is booming across APAC: What SME owners must do now
Asia-Pacific’s M&A market has surged 51% year-on-year, reaching over USD 807 billion in the first nine months of 2025—its highest level since 2021 and the third-largest on record. What’s remarkable is that this growth has occurred without a single deal exceeding USD 10 billion. Instead, mid-sized transactions are driving the boom, particularly in China, Japan, India and Australia.
For SME owners, this signals a shift in how value is created and captured. The market is no longer waiting for billion-dollar headlines. It’s moving fast, favouring strategic clarity, operational readiness and deal agility. At Morgan Shaw Advisory, we believe this is the moment for mid-market businesses to rethink their positioning, prepare for inbound interest and align with the new rhythm of dealmaking.
Why this matters now
The APAC region is undergoing a strategic reset. China’s state-backed consolidations, Japan’s take-private wave, India’s demographic-driven resilience and Australia’s infrastructure and tech focus are all contributing to a dynamic M&A environment. Even private equity buyouts are up 30%, showing strong investor appetite and abundant dry powder.
This matters for SME owners because:
Mid-market is the new sweet spot: Buyers are targeting scalable, profitable businesses that can be integrated quickly.
Inbound interest is rising: Australia alone saw a 101% year-on-year surge in deal value, with global buyers circling.
Strategic alignment beats size: Deals are being done faster, with sharper focus on fit, synergy and execution.
What we’re seeing on the ground
At MSA, we’re advising clients across sectors who are receiving unsolicited interest from both domestic and international acquirers. In one recent case, a healthcare technology firm received three inbound approaches within six weeks and none of them from traditional competitors. What they had was:
Clean financials
Strong recurring revenue
A clear strategic narrative
This is becoming the norm. Buyers are looking for businesses that are ready to go, not just in terms of numbers, but in terms of story, structure and scalability.
How MSA helps: EBITDA+ SIX STEPS TO SUCCESS™
Our proprietary framework, EBITDA+ SIX STEPS TO SUCCESS™, is designed to help SME owners prepare for this exact moment. It includes:
Exit readiness assessments to identify gaps and opportunities
Strategic positioning to align with buyer priorities
Due diligence preparation to reduce friction and increase deal speed
Tailored marketing to attract the right kind of interest
Negotiation support to maximise value
Post-deal planning to ensure continuity and legacy
What SME owners should do now
Here are five questions every SME owner should be asking:
Is my business positioned for strategic acquisition or just operational sale?
Do I have a clear value narrative that resonates with buyers?
Are my financials and operations due diligence-ready?
Have I considered the impact of foreign interest or private equity?
What would I do if I received an offer tomorrow?
Let’s Talk
If you’re an SME owner wondering how to capitalise on this M&A wave, let’s start a conversation. Book a confidential consult with our advisory team or explore our latest resources on MSA’s website.