Mergers and Acquisitions in India – New Issue of India Briefing Magazine Out Now
In this issue
- M&A Activity in India 2022: Trends and Outlook
- Regulatory Framework Governing Mergers and Acquisitions in India
- Procedure to Navigate a Successful M&A Deal in India
In the rapidly transforming business landscape, C-suite executives are developing agile and adaptable techniques to embrace new disruptive business realities through acquisitions, amalgamations, and fundraising. Such considerations have exponentially spurred merger and acquisition (M&A) deal activity, both in India and worldwide. Consequently, despite economic headwinds, 598 deals valued at US$112.07 billion took place in 2021 in India.
The COVID-19 pandemic also facilitated this growth in deal activity as it gave rise to several multi-sector digital disruptors in finance, retail, technology, logistics, etc. Other enabling factors include the convergence of mobility and digital commerce, the metaverse, and virtual evolution of services, such as for health and wellness.
M&A transactions both drive growth within and open access to new markets, along with providing many other sops, such as tax benefits, increased brand value, and capability expansion. In 2021, more than 70 percent of the deals concluded in India were linked to innovation from the technology sector, with an inclination towards consumer goods, marketplace platforms, FinTech, and EdTech companies. The 2022-23 M&A outlook for India will remain pivoted towards future growth engines like digital, renewables, electric vehicles, Healthtech, FinTech, etc. Alongside large corporations, startup unicorns are now becoming major acquirers.
The upward deal momentum has also been sustained by pragmatic reforms in the Indian regulatory landscape governing M&A. The reforms have fast tracked the process of amalgamation in India, with exceptions in few cases. Nonetheless, investors and foreign entities should note that various legal provisions in the country’s company, securities, tax, foreign exchange, and sector-specific laws are applicable to M&A deals struck in India.
Various factors must be considered while deciding to pursue an M&A. These include commercial aspects, detailed due diligence, identifying potential issues with costs or cultural conflicts, or any negative impact on existing or new customers. It is important for the buyer to ascertain the attached obligations, litigation risks, contingent liabilities, and much more, prior to finalizing their deals.
In this issue of India Briefing Magazine, we analyze the latest M&A activity in India, focusing on the sectors gaining the most traction, and dissect how these trends will shape future developments. We also walk you through the regulatory landscape governing the Indian M&A ecosystem and provide a comprehensive guide to the relevant technical procedures required to successfully navigate the M&A dealmaking process in India.
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