Investor confidence is coming back as Asia-Pacific M&A volume and value eclipses first half 2013 numbers, thanks in part to stable valuations in the region.

The region saw a jump in value and deals from the same period last year totaling US$300 billion with 1,619 deals in H1 2014, compared to US$206 billion for 1,466 deals in H1 2013. China accounted for 574 of these deals followed by Australia (246) and Japan (182) for the first half of the year. India also continued the regional growth trend in M&A having US$17.1 billion worth of deals for H1 2014, a 45% increase over last year, according to the Asia-Pacific M&A Barometer from Ascent Partners and Mergermarket.

Additional highlights in the first half of 2014 include:

* The top three sectors by number of deals for H1 2014 are industrials and chemicals (20% of deal volume), TMT (18%), and consumer (12%)

* 53% of the number of total regional volume were deals valued below US$50 million; 39% of deals were valued between US$51 million and US$500 million

* Private equity buyouts for H1 2014 saw an increase from 134 transactions valued at US$16 billion to 174 at US$50 billion on a year-on-year basis

In a related report, Bob Partridge, EY managing partner for transaction advisory services and private equity for Greater China and Asia-Pacific, notes that the healthcare sector has considerable potential in the year ahead.

"This includes deals involving investments into hospitals, medical device manufactures, healthcare service providers and a variety of other industry-related services," Partridge says. "Growth in the sector is expected as the country and broader region's middle classes accrue more disposable income while developing greater concerns for their health."

Aside from healthcare, general investment activities in China and the region are arising in mid-market enterprises. When attempting to secure deals, as competition increases, he advises that it isn't always money that wins.

"In many cases, it's how general partners and private equity professionals can add value to companies they are investing in. Company owners in Asia, specifically family-owned enterprises, are less willing to sell to the highest bidder and more likely to work with professionals who can ensure their businesses will be maintained and not just sold off piece by piece," notes Partridge.

He adds, "Another factor that will give private equity firms--especially international firms or those engaging in cross-border transactions - an edge is having a direct presence in their target markets. You have to get seasoned deal originators into those markets and have the right boots on the ground to develop the networks necessary to finding quality deal opportunities."