Singapore Budget 2023 Commentary – Moving Forward with Mergers and Acquisitions

Moving Forward with Mergers and Acquisitions (M&A)

With Singapore moving towards a post-pandemic environment in 2023, many businesses are seen undergoing restructuring to re-evaluate opportunities to better adapt to a future embracing green investments. Mergers and Acquisitions (M&A) provides an extensive range of gateways for businesses to grow by gaining access to new markets, achieving economies of scale and scope and diversification etc.

To encourage businesses to scale and expand through M&A and venture into complementary businesses and emerging sectors, government agencies can play a vital role by providing various incentives and financing schemes to meet transaction funding needs.

Singapore Budget 2023 has announced that the government will provide a S$1 billion top-up to Singapore Global Enterprises initiative and S$150 million for SME co-investments alongside fund managers.

Scale-up SG, launched in 2019, is Enterprise Singapore’s flagship growth programme to accelerate the growth of high potential enterprises and help them become global champions.

Under the Scale-up SG programme, the 65 participating companies have successfully launched over 50 new products, expanded into 32 new markets, made more than 30 merger and acquisition deals, and embarked on more than 20 innovative collaborations with fellow participants.

For companies exploring the M&A route, the Enterprise Financing Scheme – Merger & Acquisition (EFS – M&A) which was enhanced for 4 years, from 1 April 2022 to 31 March 2026, will serve to empower businesses to venture into both international and domestic markets to scale up business, innovate and diversify into new economies of growth.


List Of Key Information For The EFS – M&A

Key Information Description
  1. Is a business entity1, registered and physically present in Singapore
  2. Has at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
  3. Has Group Annual Sales Turnover of not more than S$500 million
Maximum Loan Quantum S$50 million / borrower or borrower group2

Note: Borrowers are subject to an overall borrower group limit of S$50 million for EFS – M&A. In addition, there is an overall loan exposure limit of S$50 million per borrower group across all facilities.

Maximum Repayment Period 5 years
ESG Risk-share The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.
Interest Rate Subject to PFIs’ assessment of risks involved.

1 ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the scheme. Approval of the loan is subject to the PFI’s assessment.
2 Borrower Group consists of the following:

  • Borrower; and
  • corporate shareholders holding more than 50% at all levels up; and.
  • Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
  • Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all level down


With the additional government fundings and various capability building programmes, Singapore is bound to see an increase in its local enterprises looking for more opportunities to grow both domestically and internationally through M&A. Consequently, commercial due diligence and financial due diligence services will become an essential that many businesses will require if the businesses are hoping onto the bandwagon to take advantage of newly announced fundings as well as the existing EFS – M&A within the qualifying period.


Why is due diligence so important?
Due diligence is a procedure of corroboration, investigation and examination of a potential merger or acquisition deal to substantiate all relevant financial and non-financial information. Most M&A transactions that underwent a due diligence process have seen a higher chance of success. Predominantly, due diligence enhanced the quality of information available to decision-makers to assist decision-makers to make more informed decisions.


List Of M&A Services For Buyer And Seller:

Key Information Description
Sell-side Finding the right buyer is key when selling a company to ensure that the business value is optimised for the seller.

Mergers & Acquisitions services include:

  • Analyse the market and ascertain the appropriate valuation metrics
  • Prepare an information memorandum or company deck card
  • Develop proposal and negotiation strategy
  • Negotiation of the terms of the transaction
  • Arrangement of financing if required
Buy-side In accordance with specific investment needs and acquisition criteria of the buyer, M&A helps in sourcing valuable targets across extensive regional and global networks.

Merger and Acquisitions services include:

  • Develop the target criteria
  • Source for potential target
  • Analyse potential financial impacts/benefits of the acquisition
  • Develop acquisition proposal and negotiation strategy
  • Negotiation of the terms of purchase
  • Arrangement of financing, if required
Fund raising There are various options and channels available for companies to raise funding in support of business growth and expansion.

Merger and Acquisitions services include:

  • Develop growth and expansion plans
  • Strengthen corporate management
  • Develop business plans
  • Conduct feasibility studies



Merger & Acquisition Advisory Specialists

Grace Lui
Valuation & Transaction Services
Karen Lau
Associate Director,
Valuation & Transaction Services


Download the full Singapore Budget 2023 Commentary – Moving Forward with Mergers and Acquisitions .



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