Confidence continues to rejuvenate markets across the globe, ushering in a fresh wave of M&A as cash rich corporates look for opportunities to utilize padded balance sheets. Asia-Pacific stands at the forefront of this trend, according to Ascent Partners and Mergermarket.

Deals in the third quarter 2014 have reaffirmed the region's growing strength, surpassing strong performance records for the same period in 2013. Deal values jumped to US$142 billion, with deal volumes rising significantly from 766 in Q3 2013 to 847 in Q3 2014 as industries across the region see widespread consolidations and as foreign investors look to the region's high-growth markets for returns.

Additional highlights taken from Mergermarket data in Q3 include:

* Top three sectors by deal volume were: industrials and chemicals (21%); technology (15%); and business services (11%);

* 55% of the region's deal volume was in transactions valued below US$50 million, while 38% was in the middle market range (those deals valued between US$51 million and US$500 million);

* Private equity buyout values rose to US$27.1 billion in Q3 2014, compared to US$17.1 billion in Q3 2013.

Lee Boo Ho, executive director for the Korea Core Industrial Technology Investment Association (KITIA), comments on trends and opportunities in South Korean M&A: "South Korea attraction is due to the rapid growth of domestic companies and their changing perception toward M&A. The government has been trying to revitalize the Korean economy by encouraging domestic corporations, particularly in the manufacturing industry, to enhance their global competency by acquiring abroad. The lessons they learn and assets they acquire can be practically applied in South Korea. The government has also set out to create various M&A funds and supporting outbound activity with deal sourcing and M&A advisory services," says Lee.

In terms of outbound activity, South Korean corporations have completed 39 transactions in the manufacturing space. These deals have targeted companies in Europe, Asia, and the US, Lee says.

"Korean companies are expanding and entering new markets to enhance their global presence and competence, and also to acquire core technologies and new innovation. Cross-border M&A is also allowing them to transfer their production bases to countries in Asia-Pacific where labor may be cheaper, offering cost-cutting incentives to relocate operations," he adds.

Lee also notes that even as they increase their experience abroad, some of these companies are running into difficulties in foreign markets due to a lack of foreign networks. To compensate, they can collaborate with multinationals or foreign PE firms.