Taiwan’s mergers and acquisitions (M&A) market is showing resilience despite global trade tensions triggered by US President Donald Trump’s tariff policy shifts, global accounting firm Ernst & Young’s (EY) local branch said yesterday.
While businesses worldwide are re-evaluating investment strategies, Taiwan is seeing a solid rebound in dealmaking activity, especially in smaller transactions and financial sector integrations, according to EY’s 2025 Global CEO Survey.
The first quarter saw a renewed momentum in mid-sized transactions in Taiwan even as foreign buyers remained cautious due to geopolitical risks, EY said.
Photo: Claire Cheng, Taipei Times
“Despite ongoing global uncertainty, and valuation gaps between buyers and sellers, the current environment presents a rare window of opportunity, especially for well-capitalized buyers with previous deal experience,” said Audry Ho (何淑芬), managing partner at EY’s local transaction advisory service.
While some companies are delaying deals amid tariff uncertainties and geopolitical concerns, others are seizing the moment, the survey showed.
A total of 67 percent of respondents said they plan to pursue joint ventures or strategic alliances, while 57 percent are preparing for acquisitions and 35 percent are exploring divestitures, spin-offs or initial public offerings over the next 12 months, it said.
As Taiwan is navigating the shifting global trade landscape, its dealmakers seem more determined than deterred — ready to act while others hesitate, Ho said.
However, tariff risks demand sharper strategic planning, and companies considering cross-border deals must factor in three core variables, she said.
They are: macroeconomic conditions — to avoid overpaying for targets — and tax and tariff policy directions, which could significantly affect cash flows and integration costs, she said.
In addition, before potential transactions, companies should take into consideration capital market stability, with misaligned price expectations emerging as a key dealbreaker, she added.
The life sciences industry is particularly vulnerable, because heavy reliance on global supply chains makes it susceptible to tariff shocks, the survey said.
European pharmaceutical companies face high US duties, while US firms operating production lines in Europe could be caught in retaliatory crossfire, it said.
Trump’s push for domestic manufacturing and clinical trials while reducing reliance on foreign suppliers also raises cost concerns for companies, it said.
Last year saw a recovery for global and Taiwanese M&A activity after a sluggish 2023, it said.
Total global M&A deals reached US$3.4 trillion last year, up 13.3 percent from the previous year, fueled by looser central bank policies and investor optimism in the booming artificial intelligence sector, it said.
Taiwan posted US$12.8 billion in total M&A transactions last year, driven in part by several high-profile deals in the financial sector, it said.
Small-scale M&A deals rose by about 24 percent year-on-year, contributing to heightened market activity, it said.
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