The number and value of Asia-Pacific M&A deals rose significantly once again last year, beating 2013′s historic high, according to the latest figures from Mergermarket.

The region saw 3,250 deals worth $591.6bn, compared with just 2,577 transactions in 2013 totalling $412.4bn, but lawyers are hoping for more mega deals in 2015.

Inbound investment into the region increased for the second consecutive year and drove much of the activity, with buyers coming mainly from Europe and America. Those from Europe spent a total of $34.6bn in 2014, up 28.6% on the previous year.

Private equity activity was another area of growth during the 12-month period, with record numbers of buyouts and exits. For the full year, some $68.8bn was invested in the region by private equity firms, up 62.4% on 2013, while exits totaled $35.4bn with 185 deals, up 21.1% from $29.2bn and 138 transactions in 2013 respectively.

"I think there will continue to be more public takeover deals, reflecting continued private equity interest in public deals in Hong Kong, consolidation of China-based businesses and more China SOE restructurings," said Nick Norris, senior corporate partner at Kirkland & Ellis.

"Inbound activity remains of interest to European and American buyers; if economic growth is slow in Europe but companies want to continue to grow, then growth through acquisitions in developing markets, such as China, which is obviously a big market for a lot of industry sectors, will still be an area of interest."

He noted however a lack of complex, high value, cross border deals in 2014 as seen in previous years: "Generally, M&A activity is trending the right direction, average deal size is increasing, but there's still a lot of small deals out there."

Handel Lee, a senior M&A partner at King & Wood Mallesons (KWM), which topped the advisor leaderboards for number of deals handled for the second year running, also acknowledged fewer large transactions during the year.

He said he expected 2015 to be better, and predicted that deals would be within the region as well as between Asia and the West, though many would involve China.

"In 2015 there will be a lot of cross border M&A, particularly in Australia with the privatisation of 'poles and wires networks' in New South Wales and Queensland. Those will be massive, multi-billion dollar projects. Those are going to be heavily invested into by Asian companies from Hong Kong and particularly the PRC.

"We are also seeing a significant interest in energy, particularly power and renewables companies and projects in Europe, invested into also by PRC companies. There is a keen interest by SOEs as well as private companies."

The figures also showed a growth in Asian outbound deals for last year, reaching 427 and $89.6bn by value – the highest on Mergermarket record.

However, the research company highlighted a tendency toward smaller investments, and said growth since 2013 was just 4%.

It also noted a shift in outbound targets in the last three years away from the energy, mining and utilities sector and towards other industries such as technology, leisure and transportation.

It said energy deals were down 64.3% to $24.6bn in 2014, from $68.9bn in 2011, while technology deals topped 399 worth $53.7bn, almost 50% higher than the $36.5bn from 248 deals in 2013.

Asia's consumer sector also saw 324 deals valued at $55.2bn, an increase of 28.1% by value from the previous year.

Lee commented: "Yes 2014 saw a decrease in outbound and resources and utilities, but I think in 2015 we will see an increase in that.

"Now with policies and new regulations encouraging outbound investment coming into more concrete form we will see a lot more investments.

"Private companies in TMT and hospitality are [indeed also] becoming more active. It has become much easier for them to get approvals to go abroad and make investments; the whole regulatory environment is being relaxed."

As for the most active M&A law firms during the period, KWM was number one for volume and number two for deal value, after advising on 121 deals worth 62.6bn.

Freshfields Bruckhaus Deringer jumped to the top for deal value – up from 7th place last year – acting on 37 transactions totaling $89.9bn.

Korean outfit Kim & Chang was meanwhile ranked number three for deal value and volume – up from 12th and 6th place respectively in 2013.

Mergermarket said South Korean companies were the target in two of the top ten Asian deals which boosted the country's annual deal value up to the highest yet seen at $73.5bn.

It said a strong deal flow was expected for 2015 in South Korea, particularly in the TMT sector with investment in the country's mobile industry being a good testing ground for future investment in Southeast Asia.

It added this would extend to advertising digitalisation where emerging market countries are expected to contribute to 62% of additional ad spend between the years 2013 and 2016, according to research by Publicis.