Market Insights Financial Corporate Finance

Mergers and Acquisitions - Singapore

Singapore

The transaction value in the Mergers and Acquisitions market is projected to reach US$17.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 9.66% resulting in a projected total amount of US$19.19bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$83.07m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Mergers and Acquisitions market in Singapore has been witnessing a steady growth in recent years.

Customer preferences: Companies in Singapore are increasingly looking to M&A activities as a strategic move to expand their market presence, diversify their offerings, or acquire new technologies. This trend is driven by the desire to stay competitive in the global market and achieve economies of scale.

Trends in the market: One notable trend in the Singapore M&A market is the rise of cross-border transactions. Singapore's strategic location as a financial hub in Asia, along with its business-friendly environment and stable political climate, make it an attractive destination for foreign investors looking to enter the Southeast Asian market. This trend is expected to continue as companies seek growth opportunities beyond their domestic borders.

Local special circumstances: Singapore's strong regulatory framework and transparent legal system provide a level of certainty and security for both domestic and foreign investors engaging in M&A activities. Additionally, the government's support for innovation and entrepreneurship through initiatives like the Research, Innovation and Enterprise 2020 plan further boosts the M&A market by encouraging investment in technology and innovation-driven companies.

Underlying macroeconomic factors: The stable economic growth, low unemployment rate, and favorable interest rates in Singapore create a conducive environment for M&A transactions. Companies are more willing to engage in M&A activities when the economy is performing well, as they see opportunities for growth and expansion. Moreover, Singapore's position as a regional financial center attracts a pool of investors and financing options, facilitating M&A deals in the market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.