Is Your Business Mergers and Acquisitions (M&A) Ready?

Companies consolidate for various reasons and can do so in several ways, with mergers or acquisitions among the most common methods. 

To understand whether your business is ready for M&A, it is first helpful to define the terms:

A Merger is when companies combine to form a new organisation.

An Acquisition is when one company purchases another company, typically resulting in the acquired company becoming a subsidiary or integrating into the acquiring company’s operations. 

After steady growth and market success periods, small and medium-sized enterprises (SMEs) with solid growth potential may become attractive acquisition targets for larger organisations, or they may find lucrative opportunities when merging with another company.  

With M&A activity across many sectors in Singapore returning to pre-pandemic levels, there are opportunities for businesses to strengthen strategies and supplement gaps. According to a recent article, many organisations turned to M&A post-COVID-19, as borders reopened and consolidation became a more effective means of remaining competitive. For example, Singapore Airport Terminal Services (SATS) acquired Worldwide Flight Services to meet the increasing e-commerce demands. This acquisition enabled SATS to access five major global cargo airports.

To find out more about preparing yourself for a merger or acquisition, click here.