Samil PwC "M&A Market Recovery Starting from Second Half of This Year"

M&A Market Expected to Recover in Second Half of Year
Key Strategies Highlighted in Beauty and Environmental Sectors
Private Equity Activity and Listed Company M&A Trends Discussed

There is a forecast that the mergers and acquisitions (M&A) market will recover in the second half of this year. In the beauty and environmental industries, which have emerged as 'hot sectors' in the domestic industry, M&A strategies such as securing overseas distribution networks and building value chains centered on waste recycling were presented.

Minjun Seon, Leader (Representative) of the Deal Division at Samil PwC, is speaking at the seminar on "2025 Mergers and Acquisitions (M&A) Market Outlook and Response Strategies." Photo by Samil PwC

Samil PwC announced on the 6th that it held a seminar titled '2025 M&A Market Outlook and Response Strategies' on the 5th at its headquarters in Yongsan-gu, Seoul, attended by over 300 corporate officials.

Ryu Gil-ju, Vice President of the Deal Division at Samil PwC, based on the '2025 M&A Market Outlook' report published on the 4th, stated, "Although the M&A market has experienced a downturn for three consecutive years, market participants have begun seeking new opportunities, and it is expected to gradually recover as the second half (July to December) progresses."

Hong Seong-pyo, K-Beauty Sector Leader (Partner), commented on the domestic beauty industry, saying, "The growth background includes the competitiveness of Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) companies, export-oriented indie brands, diversification of offline channels, and the online 'vertical commerce' (shopping platforms specializing in specific product or service categories)." He advised, "Since 80-90% of the cosmetics markets in major export countries such as the United States and Japan are concentrated offline, securing local specialized distribution networks will be a key competitive advantage in the future."

Regarding the environmental industry, Son Young-baek, Energy, Infrastructure, and Waste TFT Leader (Partner), said, "Until 2020, most M&A activities were focused on downstream (waste treatment), but since 2021, the upstream (waste recycling and energy conversion) proportion has increased and is expected to continue growing." He emphasized, "Attention should be paid to the upstream of the recycling industry, such as collection and sorting of recyclables, according to future regulatory changes, and building value chains is important."

There is also a forecast that private equity (PE) M&A activities will become more active this year. Lee Jung-hoon, PE Group Leader, said, "Procurement interest rates are showing a downward trend, and PE's investment capacity is expected to increase." He predicted, "It will be important to identify and create value-up opportunities in secondary acquisitions or carve-out deals, and the importance of internal and external advisory for this will be highlighted."

Regarding M&A of listed companies, Jung Ji-won, Head of the Listed Company Support Center, stated, "The proportion of private equity among major shareholders of listed companies has more than doubled over the past 10 years, and among 54 stock transfer contracts involving management rights transfer of listed companies, healthcare and bio sectors accounted for the largest share." He emphasized, "With improvements in the IPO system, thorough preparation for listing is necessary, as well as active preparation of articles of incorporation, treasury stock, and investor relations (IR) to prevent disputes among shareholders, and efforts to increase value in response to changes in the delisting system are required."