Support for SMEs in Succession Planning and M&A Advisory

Mr Leon Perera asked the Minister for Trade and Industry (Industry) what measures or schemes are there to (i) support business succession planning for SMEs and (ii) assist SME owners who are seeking to sell their business to locate investors as many SMEs are unable to engage conventional M&A advisory firms due to their small deal size.

The Government has several initiatives to support small and medium enterprises (SMEs) in planning for business succession.

First, SMEs which need assistance to develop business succession plans can tap on the Standards, Productivity and Innovation Board's (SPRING’s) Capability Development Grant (CDG) to defray the costs of engaging external consultants. Areas which can be supported include the development of customised talent management programmes to address a company's specific needs, strategic priorities and leadership capabilities required.

Second, to help SMEs strengthen their leadership capabilities, future leaders can attend leadership and management courses supported by SkillsFuture Singapore, such as the Leadership and People Management Workforce Skills Qualifications (WSQ) training programmes or the SkillsFuture Singapore (SSG)-Singapore Management University (SMU) NextGen Leadership Series. For exposure to key overseas markets or critical business functions, companies can tap on the SkillsFuture Leadership Development Initiative (LDI) to design leadership development roadmaps and implement relevant on-the-job leadership development opportunities.

Third, SMEs looking to upgrade their talent management and succession planning capabilities can send their human resource (HR) practitioners for HR WSQ programmes offered by SkillsFuture Singapore through its Continuing Education and Training (CET) Centres. The WSQ Specialist Diploma in Human Capital Management includes an elective unit on succession management.

SPRING works with partners to educate and assist SMEs in mergers and acquisitions (M&A). To help SMEs understand the M&A process, connect them with potential buyers and find opportunities for collaboration, SPRING has partnered organisations, such as Singapore Exchange (SGX) and United Overseas Bank (UOB), to hold sharing sessions on M&A and networking events. Past events include the SME Financial Management Growth Seminar by SGX and SPRING, the UOB-SPRING M&A Seminar, and the Singapore Furniture Industries Council's Funding Seminar.

SMEs looking to better understand the M&A process can also approach any of the 12 SME Centres for assistance. SMEs which are looking to embark on acquisition will need to formulate a strategy, identify suitable targets, and conduct due diligence and post-transaction integration. Companies which need support in these areas can tap on CDG to engage consultants with declared M&A expertise certified by one of the three certification bodies under SPRING's Consultant Quality Initiative.