Cross border M&A advisory services
in Singapore and Southeast Asia

Singapore and Southeast Asia Overview and Trends

Singapore has developed as an international trade port and experienced an influx of many foreigners that has help form the country into a diverse mix of ethnicities, languages, and religions.
Taking a similar approach in its economic policies, Singapore has proactively invited foreign companies and foreign investment which has fostered the economic growth of the country.

Singapore at a glance:

Location and accessibility to neighboring countries
Highly developed logistics and communication infrastructure
Political and social stability, highly skilled and educated workforce, the use of English as the main business language
Open business policy and low barriers for foreign direct investment
Favorable tax system and competitive tax rates (i.e. low corporate tax rates)
Free Trade Agreements (FTA) and investment treaties with multiple countries
Through recent years, Singapore and Southeast Asian countries have experienced a remarkable economic growth and collectively as a region continues to establish itself on a global stage. With agreements such as the ASEAN Economic Community (AEC) which has liberalized goods, services, and investment with the region, Southeast Asia has strengthened as a singular market and competitive economic zone.

Market trends for foreign companies in Singapore

With the recent economic growth of Southeast Asia and Singapore being one of Asia business centers, many foreign and Japanese companies have established their regional headquarters in the country.
Acquisition of a Singaporean company was once considered a strategic entry into the Southeast Asia market. Not only are investors acquiring Singaporean companies to gain access to the region, but companies already established in Southeast Asia are looking for a strategic acquisition to position the business for future growth by centralizing their internal functions and by leverage the vast business channels accessible by Singaporean company.

Challenges facing small and medium enterprises (SME) in Singapore

SMEs comprise the majority of Singapore’s enterprises. As the country shifts from its industrial begins to a service oriented economy, many SMEs are facing a difficult challenge in transitioning their business to a new generation of business owners. These difficulties can be further illustrated as more than half of management and business owners surveyed believe that there is no one currently qualified to successful succeed their business.
One alternative to preserve the continuity of a business is to consider the sale of the business to a potential new buyer. It is often a difficult decision to sell a business and while it must make economic sense to the seller, there are many other variables that are often factored into the decision making process such as the cultural and business “fit” with the buyer, new management’s business philosophy, vision of the business, human resources issues and most importantly trusting the potential buyer and their management team to continue the business.
From a business development perspective, a seller can also be concerned with the business strategies by new ownership, potential realignment of the business model, the buyer’s approach in their existing markets and overseas expansion plans (in addition to major trading partners such as China and Malaysia.)
Japanese companies can offer a solution to Singaporean companies that face succession problem. Japanese companies can offer their business partners world-class technology, management and operational expertise, and place a high value on maintaining a harmonious relationship with their business partners.

M&A advisory services in Southeast Asia

In our efforts to support our client’s cross-border expansion and to develop deeper ties with local companies, Amidas Partners extend our coverage to Singapore and Southeast Asia in 2012 and established our subsidiary in Singapore in 2014. With our experienced team of international professionals and by utilizing our unique strengths, we represent the key in unlocking our client’s potential in Singapore/Southeast Asian markets, helping to enhance their corporate value through a cross border M&A transaction.
  • > Deal sourcing and deal proposal:
    Having our office in Singapore has helped localize our firm in Southeast Asia, allowing Amidas Partners to develop and leverage a trusted network of local financial institutions, accounting firms and independent advisory firms.
    Working with our local network, we also prioritize on developing a level of trust with the sellers by understanding their business needs and reasons for selling the business. From deal sourcing to proposing an opportunity to our clients, we endeavor to be the most trusted advisor throughout each phase of the M&A process.
  • > Deal Execution and Process Management:
    We customize our approach and manage each cross border M&A transaction to meet our client’s objectives.
    It can often be the case in a cross border M&A that a local private company and its management are highly sensitive in disclosing information to a foreign / Japanese company. Prior to releasing any information, local sellers have been known to request a face-to-face meeting with potential buyers. We believe that this is vital step in a cross border M&A as it allows both parties to learn about each other and fosters an environment for open dialogue between the parties.
    In order to realize a smooth integration, we believe it is also important that during the negotiation phase it is critical to structure a deal that supports a seamless transition in the post-merger phase.
  • > Managing risk in post-merger integration:
    A cross border M&A transaction can present more risk, versus a purely domestic M&A, arising from the differences in corporate cultural and operating in a foreign legal system.
    As cross border M&A professionals, we not only identify but help minimize these risks by leveraging our experience and by working closely with our network of local industry specialist (i.e. lawyers, accountant, and tax consultants) in each region to offer our clients customized and prudent advice.

Cross border M&A transactions in Singapore and Southeast Asia

2016

Client Company Acquirer/Acquired Company Description
WILL GROUP Asia Pacific Pte Ltd Oriental Aviation International Pte Ltd and its group companies (Singapore) Advised WILL GROUP Asia Pacific Pte Ltd on its acquisition of Oriental Aviation International Ltd and its group companies.
KYC Machine Industry Co., Ltd. Presco Scaffolding Pte Ltd and Presco Scaffolding & Services Pte Ltd (Singapore) Advised KYC Machine Industry Co., Ltd. on its acquisition of Presco Scaffolding Pte Ltd and Presco Scaffolding & Services Pte Ltd.

2015

Client Company Acquirer/Acquired Company Description
Kamei Corporation Lee Huat Yap Kee Pte. Ltd. and 3 group companies (Singapore) Advised Kamei Corporation on its acquisition of Lee Huat Yap Kee Pte. Ltd. and its group companies.
Nitto Kogyo Corporation Gathergates Group Pte Ltd (Singapore) Advised Nitto Kogyo Corporation on its acquisition of Gathergates Group Pte. Ltd.

2013

Client Company Acquirer/Acquired Company Description
Mitani Corporation Dama Enterprise Pte Ltd(Singapore) Advised Mitani Corporation on its acquisition of Dama Enterprise Pte Ltd.
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