The deals are back!
The markets saw a strong recovery in September. But there has been a stronger recovery of sorts in the mergers and acquisition arena prior to that. Many of us may have misread that as a sign of fishing in the waters of the downturn.
The markets saw a strong recovery in September. But there has been a stronger recovery of sorts in the mergers and acquisition arena prior to that. Many of us may have misread that as a sign of fishing in the waters of the downturn.
In hindsight, it seems that these M&A activities that revived since May-June reconfirmed the India story much before the stock markets did. So, what seems to have led to the spurt in deals? Vaibhav Manek, Partner, KNAV, which conducted a study of M&A deals in 2009, says: “I sense a new confidence among Indian companies and CEOs to go ahead and do new deals—buying companies all over the world. It is important as valuations are still low. However, European economies are showing signs of growth and the US is much more stable now. It applies for incoming deals too as valuations in India will move up fast and this is the right time to buy.”
—Suman Layak
In hindsight, it seems that these M&A activities that revived since May-June reconfirmed the India story much before the stock markets did. So, what seems to have led to the spurt in deals? Vaibhav Manek, Partner, KNAV, which conducted a study of M&A deals in 2009, says: “I sense a new confidence among Indian companies and CEOs to go ahead and do new deals—buying companies all over the world. It is important as valuations are still low. However, European economies are showing signs of growth and the US is much more stable now. It applies for incoming deals too as valuations in India will move up fast and this is the right time to buy.”
—Suman Layak
