Economic oracles

Economic oracles

Read economists take on inflation

A snap poll of five economists on inflation, credit growth, and a host of parameters likely to worry you, me and India Inc. in 2008-09.

 

 

 

 

 

 

 

M&A Deals: From growth to consolidation in India

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Despite the global slowdown in deal activity, India is still seeing a steady flow of transactions, but the sentiment is changing from aggressive growth initiatives to rationalisation of business strategies.

Key finding:

• KPMG forecasts a continued fall in global merger and acquisitions activity(M&A), into the second half of 2008.
  
  
• There's a decrease in both 'appetite' (forward valuations) and 'capacity' (estimated net debt to EBITDA) for M&A activity
  
  
• The five months up to the end of May 2008 saw 15,968 deals globally at a value of $421.3 billion-in marked contrast to the 19,684 delas recorded in the second half of 2007-at a value of $2,161.3 billion, with Asia Pacific being the only region showing resilience.
  
  
• In India, the real estate sector has seen a slowdown. Over the next five years, Rs 50,000 crore need to be spent on infrastructure, and the sector is witnessing uncertainty because of impending elections.
  
  
• Technology sector is slowing, and there is pressure on margins.