What’s Next after M&A?

A Perspective from APAC Global Advisory

Despite the shifting global political landscapes, there is a broad consensus that 2025 will mark a year of heightened M&A activity compared to the muted activity seen in 2024. This is particularly so given that one of the largest economies, the USA, is expected to be positively impacted by the new administration’s anticipated lowering of taxes, reduction of regulatory restrictions that certain industries currently face, and the reduction of the overall size of the central US government, already being seen in March 2025. This is anticipated to have spillover effects on Asia ex-China.

Post-COVID-19, companies have been thrust into restructuring and transformation activities, some of which have been undertaken in an ad-hoc and less organised manner. Against this backdrop, M&A activity is expected to accelerate as businesses seek strategic consolidation and stronger positioning amid opportunities presented by the shifting business and political landscapes. Due to the continued withdrawal of and abstinence by US investors from China, the Asia Pacific markets (particularly the ASEAN countries) are expected to benefit and witness heightened deal activity. The technology sector, alongside artificial intelligence and digital assets, is expected to be a prime beneficiary.

In the Asia Pacific, our observation is that there is also a legacy factor impacting business sales and restructuring activity, with significant changes arising from the transition of businesses to the next generation. These may be motivated by success and shifting risk profiles, where the new generation is more upbeat about the benefits of transformation and growth, leading to moves to expand into different disciplines; by the older generation’s desire to grow the businesses for the next generation to run; or by failure—or a desire not—to hand down the business to the next generation. All of these factors potentially contribute to increased M&A activity.

While the results of Change remain uncertain, Change itself will be a constant. Global macroeconomic and political factors—such as shifting interest rates, transforming trade policies, technological advancements, and the increasing impact of AI—will also persist, requiring close monitoring by corporate thought leaders and experts in business and change. Partnering strategically with organisations that provide insights gives corporate and business leaders the advantage of adaptability while supporting strategy, corporate finance, and restructuring in an evolving business environment.

From a process perspective, the completion of a merger or acquisition is far from the completion of the merger process. In many ways, it marks the beginning of corporate or group transformation—this is where it all starts.

"No matter how promising an acquisition looks on paper, or how compelling the numbers appear, the key to ultimately realising the acquirer’s aspiration is the successful integration of the target through Change."
— Oo Ban Leong, M&A Corporate and Change Advisor

The ability to extract value from mergers and acquisitions through Change is critical to achieving the intended outcome of the deal. However, well-paced timing is strategically important to build confidence in people and teams and to succeed in value extraction.

This process is often managed within the existing operational team, whose capabilities may already be stretched by ongoing M&A activity. They may also lack the necessary training and experience in regional acquisitions to ensure all checklist items are considered. Additionally, they may be highly functionally driven—for example, finance teams may focus on reducing headcount without understanding the strategic purpose or research and development potential.

An integrated approach to post-merger/acquisition completion across all corporate workstreams is critical to ensuring that value is realised for growth. Here are the top four areas to watch out for:

(i) Post-Merger Integration Strategy & Plan

The post-merger integration phase following the completion of an acquisition or merger is instrumental in laying the foundation for maximising value creation. This phase seeks to combine and realign the businesses and their operations to fully realise the benefits of the merger. At a minimum, it involves the strategic alignment of operational processes, synergies, cultures, and systems, ultimately aiming to create a cohesive and integrated whole.

A well-structured and rigorously executed post-merger integration (PMI) plan is key to achieving this objective. The PMI plan primarily aims to optimise cost reduction, enhance operational and process efficiencies, and strengthen synergies to position the merged entity in a more stable, competitive, and resilient standing.

Stakeholders involved in devising a robust PMI plan typically include key personnel across Finance, Legal, HR, Technology and IT, Sales and Distribution, Strategic Brand, Marketing and Communications, Research and Development, Product and Manufacturing, and Supply Chain, alongside key operational executives. Each function plays a critical role:

• Finance ensures continuity in cash flow, establishes budgets, and reviews financial forecasts for the upcoming periods. It also ensures continuous tracking of the realisation of synergies from integration.

• Legal identifies potential conflicts of interest and implements necessary legal changes, such as compliance policies and contractual updates.

• HR designs an interim organisational plan and monitors key personnel metrics within the integrated entity. With restructuring, HR designs this cross-functionally.

• Technology and IT assess ongoing technology projects and ensure seamless communication functionalities from the closing date.

• Sales and Distribution review customer lists across entities, identify overlaps, and align client communication strategies with other teams.

• Strategic Brand, Marketing, and Communications ensure that the portfolio of brands and businesses translates the M&A objectives into targeted branding and client-facing initiatives, projecting the desired positioning and synergies while ensuring seamless internal and external change communication.

• Research & Development ensures that any black box, advanced technology, or innovative product design leads to value creation when integrating acquired companies.

• Product and Manufacturing assess opportunities for cost savings by combining resources and manufacturing capabilities in geographic locations.

• Supply Chain is critical for optimising operations in revenue, efficiencies, and cost and capital expenditures, impacting quality delivery, integration sourcing, production, distribution, and fulfilment.

For entities operating in regulated industries, the regulatory and legal teams play a crucial role in assessing risks and ensuring compliance. Their involvement must begin early in the transaction process to mitigate potential legal and regulatory challenges. All functions work closely with the Change Management and Transformation team, embedding change across people, markets, and technology.

Early engagement and preparation by each workstream stakeholder, coupled with proactive issue anticipation, are critical. While potential barriers and obstacles will likely have been identified during the pre-integration due diligence phase, addressing them effectively during execution ensures a smoother transition.

(ii) Brand and Product Development Integration

The brand integration of a company is critical in extracting value from any M&A activity. However, the pace at which it is undertaken depends on the strategic objective, market requirements, business opportunities, and threats.

Often, the NewCo is acquired in recognition of the synergies presented in product segments, values, or the potential for integration and expansion of the current business. The critical exercise to be undertaken involves thorough research and a strategic and comprehensive review of the purpose, proposition, vision, mission, and values against the backdrop of the combined ownership or new owners.

The extent and scope of change resulting from this exercise should not be underestimated. Reviewing the role of the brand in the portfolio strategy is key. This will be driven by insights and strategic decisions—based on resourcing and the CurrentCo’s brand portfolio—about which segments and markets they want to compete in.

Ideally, the CurrentCo would already have a strong understanding of its customers and a well-maintained database. There is an opportunity to review and combine customer bases or cross-sell through marketing, which should be managed opportunistically to drive conversions and create an integrated offering or launch complementary products and solutions to meet customers’ needs. This also presents opportunities to penetrate new customer segments that the CurrentCo may not have access to without the NewCo.

This presents a chance to re-examine the market with a fresh perspective, conduct a segmentation study to inform new strategies, and follow up with a business model review.

Many other areas in marketing require alignment, including aspects of data management, intellectual property, products and services, logos, people, and restructuring. The sooner the combined/restructured entity aligns through marketing, communication, and PR, the sooner it can provide its existing customer base—both internally and externally—with benefits that help extract synergies.

Product development, research and development, and production synergies are typically what allow a company to extract value and synergies in M&A.

During times of trade uncertainty, strategic decisions to relocate plants for economies of scale and cost efficiencies become key considerations in manufacturing. On paper, this may appear financially beneficial; however, if supply chain details are not fully accounted for, unexpected issues post-M&A can arise. These surprises may impact product quality or, in some cases, lead to a complete failure in execution.

(iii) People, Restructuring, and Culture

These areas should be carefully and sensitively managed to avoid hasty and ill-thought-through decisions made by two HR teams or the M&A project leaders or owners. The balance between knowledge lost in consolidation and the tendency to retain the acquiring team’s people when duplicate roles exist must be carefully reviewed. In execution, organisations often struggle to replicate critical skills after swiftly deciding to remove roles post-integration.

A critical step for HR is to assess and demonstrate to leaders the true costs of current practices and work with the business to illustrate the value of human capital. In integration discussions, considerations should be tracked through metrics and turnover data, extending beyond salaries to include data analysis that quantifies the cost of turnover or role elimination.

An overview of the integrated working system—including brands, products, legal, and data & technology—enables a longer-term strategic approach to restructuring, taking into account the inevitable workforce reductions increasingly driven by technology.

Integrating various HR tech solutions from/to the CurrentCo or NewCo, such as AI-powered recruitment tools and cloud-based HR systems, offers a more comprehensive approach to managing routine tasks efficiently. These technologies streamline processes, automate repetitive tasks, and provide valuable insights through data analytics, paving the way for more efficient operations and enhanced employee experiences.

Post-integration, from a human resource perspective, ensuring the organisation remains agile and adaptable while retaining a core team of professionals that ensures sustainability and longevity is key. For example, if the business was purchased for its R&D abilities, careful consideration must be given before “cutting” people related to product development for the future.

Minimising personnel costs is often top of mind. However, managing the exodus of positions and preventing employees from burning out or becoming disillusioned are priorities. The fundamental challenge is maintaining a balance in hiring and retaining good people while integrating technology alongside artificial intelligence and digital assets.

Integrating platforms that facilitate seamless onboarding of the NewCo to the CurrentCo (and vice versa), training, performance setting, and evaluation is critical for organisational success in today’s dynamic work environment.

(iv) Data and Technology

Integrating data and technology systems is critical to realising the full potential of an M&A transaction. Beyond merging systems, it requires a strategic approach to enhance capabilities and ensure seamless data flow to optimise business operations.

A key challenge is determining whether to adopt the CurrentCo’s existing systems or integrate the NewCo’s technology. This decision depends on the strategic objectives of the M&A, with each approach presenting distinct advantages and risks.

Adopting the CurrentCo’s systems offers the benefit of standardisation and potentially lower long-term costs. However, careful planning is necessary to ensure seamless data migration while addressing the NewCo’s unique data requirements. A thorough assessment of the NewCo’s existing systems and data structures is crucial, along with a structured data migration plan covering cleansing, mapping, and validation. A comprehensive change management strategy should support system transitions, ensuring the NewCo’s employees receive adequate training.

Conversely, integrating the NewCo’s technology may be advantageous if it offers advanced capabilities, a more scalable infrastructure, or access to specialised expertise. In such cases, a detailed evaluation of the NewCo’s technology and its compatibility with the CurrentCo’s infrastructure is necessary. The integration process should include clear timelines, resource allocation, and phased rollouts where needed. Acknowledging the impact of change on CurrentCo employees is equally important, with proper communication and training in place to support the transition.

M&A transactions often bring together companies at different levels of technological maturity. Identifying gaps in capability and developing a plan to address them is essential. This may involve investing in new technology, upskilling employees, leveraging secondments to champion internal change, or engaging external expertise to facilitate integration.

Data migration and integration play a pivotal role in unlocking the combined value of the CurrentCo’s and NewCo’s data post-M&A. Ensuring data quality and accuracy throughout the migration process is key, with special attention to granularity and overlap between datasets. Aligning data governance policies and procedures across both entities helps create a cohesive data structure. Developing an integration layer with clear data mappings across various data sources supports consistency. Sufficient time must be allocated for the migration and transition, allowing employees to adapt effectively to the new data environment.

This article is written by Wong Mei Wai (Founder, CEO & Chief Change Advisor of APAC Global Advisory (AGA)), with contributions from the AGA team—Ban Leong Oo (M&A, Corporate and Change Advisor) and Lee Gang (AI & Data Co-creation Satellite), along with Chang Hui Tze (Marketing & Business Development Manager).