M&A targets: opportunities vs opportunism

THE vise-like grip of the pandemic shows few signs of easing, yet the appetite for deal-making remains surprisingly hearty. The question is, how many of these deals are good opportunities and how many are opportunistic ones?

In our article, "M&A activity within Singapore and region expected to remain robust" (BT, June 16, 2021), we said that merger and acquisition (M&A) activity within Singapore and the region is predicted to stay strong, boosted by pent-up demand from last year, supportive financing markets and overall strong market sentiment, particularly towards tech and high-growth industries.

Globally, US$2.4 trillion (S$3.2 trillion) worth of M&A deals were announced, as at end-May - the highest level recorded over the first five months of the year, according to data from Refinitiv. In the Asia-Pacific, M&A announcements increased 78 per cent year-on-year to an all-time high of US$433.7 billion as at end-May.