In Mergers & Acquisitions practice makes perfect | Bangkok Post: business

BY INVITATION

Thailand's economy expanded by a meagre 1.5% in 2011, according to many estimates, after manufacturing production disruptions from the floods reduced exports significantly in the year's final quarter. This year the government expects growth of more than 5% as initiatives to recover from the floods and other stimulus measures take effect.

While it may take time for many businesses to recover from the floods, this will offer a good opportunity for companies looking for merger and acquisition targets both in and outside of the country. Evidence shows that deals arranged during a downturn produce substantially higher long-term returns than transactions executed during economic good times.

Moreover, while M&A activity in Southeast Asia is on the increase across the region, Thailand has lagged. Over the last four years, companies based in Malaysia and Singapore have collectively led 78% of Southeast Asia's $52 billion worth of M&A deals. Thailand, at 11%, is punching well below its weight and is at risk of missing the big opportunities. We believe that for Thai companies, now may be the ideal time for an M&A-led strategy.