Pankaj Dave, Senior Partner at B.M. Chatrath in India, explains that after a relatively dull 2016, India's mergers and acquisitions (M&A) market is headed for some major action this year and is driving India's economic growth.
Challenges to deal activity, but reasons for optimism
The number of deals in 2016 reflects a spike in private equity backed M&A deals. However, ambiguity over tax reforms and foreign direct investment (FDI) norms continues to challenge deal activity - big companies are playing a game of wait and see. Budget reforms including the goods and services tax, foreign direct investment and sops for digital transactions are likely to drive M&A activity further and deal numbers should be much higher than in 2016.
Asia Pacific M&A market dominated by India
India is becoming an increasingly influential M&A market with deal activity reaching $64.5 billion in 2016, according to a merger market M&A trend report. This comprises 8.8% of the overall Asia Pacific deals market, the highest share since 2007. M&A deals involving Indian businesses grew to 82% cent in the first half of 2016 with digital businesses leading this trend.
Read the full article https://www.alliottgroup.net/practice-management-resources-for-owner-managed-firms/india-mergers-acquisitions-market-2017-outlook/
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