The fall in M&A values and childhood – temporary!
Inflation at 8.1% is the highest ever in the past 45 months, and buyers in India are consequently paying more for less. Thankfully, this is not a rule which applies to Indian companies which
are out there buying assets and brands in the name of M&As. As compared to even the first two months of 2008, the price per deal during March-April 2008 has fallen by a heavenly 11.18% to touch $46.40 million with even the total deal count falling by a huge 22.53% to just 141 (as per Grant Thornton’s DealTracker) – a clear antithesis of inflation in recent times.
The analysis shows that the auto sector contributed to 50% of M&A deal value (both domestic and cross-border) involving Indian companies during March-April 2008, the value of which touched a mind-boggling figure of $2.37 billion (largely consisting of Tata’s Jaguar & LandRover deals which amounted to $2.3 billion)! This was some drastic change from the previous two months during which the sector had just 2% M&A value involvement! There was another change though – that of PE interests in the real estate sector. As compared to a meagre 32% during the previous two months, the March-April interval saw 50% of all PE outflux happening into the real estate properties, accounting for $880 million in value. So, do we expect this rising interest of PE players in properties? Surely, as Pankaj Karna, Partner & Head – M&A, Grant Thornton India avers, “The momentum will carry on and we will see more deals being finalised in the real estate sector over the forthcoming 6 months...” So why’s the interest of PEs in real estate of significance? Surely, it comes as a surprise pill when we consider this rise of PE interest in the backdrop of falling number of PE deals too fell by a drastic 25.56% to a lowly 67 during March-April.
Inflation at 8.1% is the highest ever in the past 45 months, and buyers in India are consequently paying more for less. Thankfully, this is not a rule which applies to Indian companies which
are out there buying assets and brands in the name of M&As. As compared to even the first two months of 2008, the price per deal during March-April 2008 has fallen by a heavenly 11.18% to touch $46.40 million with even the total deal count falling by a huge 22.53% to just 141 (as per Grant Thornton’s DealTracker) – a clear antithesis of inflation in recent times.The analysis shows that the auto sector contributed to 50% of M&A deal value (both domestic and cross-border) involving Indian companies during March-April 2008, the value of which touched a mind-boggling figure of $2.37 billion (largely consisting of Tata’s Jaguar & LandRover deals which amounted to $2.3 billion)! This was some drastic change from the previous two months during which the sector had just 2% M&A value involvement! There was another change though – that of PE interests in the real estate sector. As compared to a meagre 32% during the previous two months, the March-April interval saw 50% of all PE outflux happening into the real estate properties, accounting for $880 million in value. So, do we expect this rising interest of PE players in properties? Surely, as Pankaj Karna, Partner & Head – M&A, Grant Thornton India avers, “The momentum will carry on and we will see more deals being finalised in the real estate sector over the forthcoming 6 months...” So why’s the interest of PEs in real estate of significance? Surely, it comes as a surprise pill when we consider this rise of PE interest in the backdrop of falling number of PE deals too fell by a drastic 25.56% to a lowly 67 during March-April.
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
Top Articles on IIPM:-
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
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