Mid-size firms join the great M&A rush

Away from the ARCLIGHTS, India’s middle market deal makers are finding themselves in the thick of an M&A boom. According to a report by Grant Thornton, the proportion of middle market cross-border deals has increased significantly. Barring a dozen transactions in the last five years, the bulk of transactions are small in terms of deal value.

Says Harish H.V., Partner, Grant Thornton: “The bulk of the transactions—around 430—are being done by mid-sized companies, whether domestic or cross-border, with significantly more deals in the cross-border area than domestic. Mid-sized companies are taking advantage of globalisation. In India, we have seen them taking the lead in terms of number of deals, etc. and using it as a lever to gain size and scale.”

Of the 460 M&A deals in India this year (January-August) with a total value of more than $48 billion, more than half (237) were cross-border deals valued at $46 billion.

According to the report, the average deal size for cross-border acquisitions has been steadily increasing over the last two years; it was about $49 million in 2005, $58 million in 2006 and $194 million in 2007.