Dealmaking in India hit a record high last year, crossing the psychological milestone of $100 billion for the first time ever. This was led by mergers and acquisitions (M&As). Rising appetite of not just established companies but also venture funded startups looking for newer growth planks, opportunity thrown up by the stressed assets piece as well as PE funded platforms created with a buy-to-build strategy is expected to drive M&A momentum in the future as well.
One notable feature of the recent M&As has been the wide sectoral spread straddling internet, telecom, petrochemicals, metals, pharmaceuticals, renewable energy, IT, consumer goods and engineering sectors. This has added more vibrancy to the dealmaking ecosystem compared to the past where large deals in selective sectors like telecom and energy among few others used to dominate.
Another factor has been the rise of more buyouts and emergence of PE vs strategic buyers contest for M&As.
As more stressed assets come under the hammer, strategic acquisitions will also get a leg up, especially in the mid-market space.
Since January, large M&A deals have been struck in housing finance, IT, textiles, pharma, dairy, education, internet, auto parts among other spaces. There has been 282 M&A deals worth over $11 billion, according to VCCEdge, the data platform of Mosaic Digital.
To discuss the emerging opportunities and challenges, learnings from past moves that worked as well as those that didn’t, Mosaic Digital, the corporate banner behind VCCircle.com, is organising its next edition of M&A Summit on 26th June at Hotel Four Seasons in Mumbai.