New wave of SME buyers mining for ‘diamonds in the rough’ in Singapore, Asean
Unlike traditional private equity firms, these niche players have an appetite for micro to small buyouts and longer-term holds
[SINGAPORE] New types of buyers are emerging for small and medium-sized enterprises (SMEs). Unlike traditional private equity (PE) firms, these niche players are open to smaller deals and have longer, flexible investment horizons to find and polish these hidden, diamonds in the rough.
SMEs tend to be overlooked in the mergers and acquisitions (M&A) space. Middle-market PE firms typically pursue deals between US$50 million and US$500 million, while large-cap firms’ deals can exceed US$5 billion.
PE firms also strive to exit investments within three to seven years to realise their returns.
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