Quotes taken from The Business Times

SMEs are becoming more open towards mergers over the past few years. Last year alone, the number of merging firms rose 57% to 104%. Macro-economic conditions may have played a part in this trend.

"MNCs in the manufacturing sector are reducing their list of approved suppliers and service providers. Our SMEs, in order to be in this approved list, are forced to become bigger, stronger and to acquire broader skill sets and technologies. This has encouraged SMEs, in particular, in the precision engineering sector, contract manufacturers, electronics and component distribution players to consider M&A," commented Mr Tay Woon Teck.

"Our experience showed that many of these established companies are family owned, and their second or third generations are not interested in the business. Therefore, it is better for these companies to exit the business," said Stone Forest Corporate Advisory, Mr Tay Woon Teck.

This article was published in The Business Times on the 7th June 2010, titled "More SMEs taking the merger route".