Despite reports of takeover deals worth billions of dollars recently, Thailand remains far less enthusiastic than most countries in using mergers and acquisitions (M&As) as a springboard to growth.
Nearly 28% of businesses globally are looking to expand through domestic or international acquisitions in the next three years, according to the Grant Thornton International Business Report.
But the report found only 11% of Thai businesses are planning to grow through acquisitions _ well below the Asean average of 23%.
In the survey covering 44 countries, only businesses in Estonia (6%), Taiwan (9%) and Japan (10%) were less keen.
Furthermore, just 3% of Thai business leaders expect to sell their companies over the next three years. Only Lithuania (2%) has a lower figure.
The Asean and global averages are higher at 9% and 8%, respectively.
Ian Pascoe, the managing partner at Grant Thornton Thailand, said M&As remain a key strategy to drive growth and scale.
With good economic growth in Thailand, Asean and Asia, it is a concern that so few Thai companies are considering M&As as an option for driving strategic growth, he said.
Globally, M&A activity is reported to be steady, while cross-border activity looks set to increase to its highest level since 2008 at the expense of domestic deals.
Of those businesses looking at M&As, 39% are planning international deals over the next three years, up from 33% this time 12 months ago.
Many companies are now sitting on significant cash reserves that generate little or no return. Coupled with moribund growth at home, this may well lead business owners to look offshore, particularly to emerging markets, for growth opportunities.
"While the overall outlook for M&As remains cautious due to the recent backdrop of the euro-zone crisis, the US fiscal cliff and political instability in the Middle East, what many of our M&A teams have been experiencing is substantial interest and support for corporations of all sizes to look beyond their own borders for acquisition opportunities," said Mr Pascoe.