Mergers & Acquisitions

M&A strategies allure on captivating attractive growth avenues based on long term value creation plan, management transaction process targeting to final integration and this shift in strategic alliances is determined to have an edge over competitors by creating a new economic paradigm.

Corporate mergers may promote monopolistic practices by reducing costs, taxes, assets, liabilities, shares and capital distribution and change in control of an organisation.

Economies of scale may also arise from other indivisibilities such as production facilities, management functions, management resources, cash flow, areas of risk and systems.

The major Mergers and Acquisitions, takeovers and amalgamations have become essential components of business restructuring and are outlined in Horizontal, Vertical and Conglomerate mergers which built synergies in enhanced managerial capabilities, creativity, innovativeness, R&D and market coverage capacity due to the complementarity of resources and skills and a widened horizon of opportunities.

Among the different Indian sectors that have resorted to mergers and acquisitions in recent times are Telecommunication, Finance, IT, ITES, FMCG, Pharmaceuticals, Automobile industry, Energy and Steel industry. With the increasing number of Indian companies opting for mergers and acquisitions, India is now one of the leading nations in the world in terms of mergers and acquisitions.

The volume of M&A transactions in India has apparently increased to about 67,2 billion USD in 2010 from 21,3 billion USD in 2009 and have reached new record of 32 billion USD in the first half of year 2011 with almost 90% of acquisitions were made by cash payments and is anticipated that the deals in India will cross $100 billion this year and will quadruple by 2015.

In spite of the massive downturn in recent years the future of M&A deals in India looks promising due to Dynamic government policies, Corporate investments in industry, Buoyant Economy, Economic stability, Cash rich and ready to experiment attitude of Indian industrialists.