That M&A is on the rise in India has spilled all over the news. It is the most talked about subject where businesses are concerned and is gaining much pace in terms of stakeholders actively trying to gather more intel on M&As. A recent report on Bloomberg, penned by Ridham Desai, MD, Morgan Stanley India talks of why the beginning of a M&A cycle bears positivity, and the challenges and risks therein.
Rise in demand for assets, the ability of buyers to buy assets and the willingness of asset owners to sell are the key drivers of M&A in India. At the same time, foreign investments routes have been simplified to promote ease of business in the country, which works in the favor of the M&A cycle. The free cash flow in the country is at a high point, thus fitting in the timing of, perhaps, the need of the hour of various Indian industries.
Desai quotes, “If history is a guide, over the next 12 to 18 months, transactions could reach USD 100 billion, representing over 5 percent of India’s market capitalisation.”
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