The M&A transactions in India have grown manifold in the last few years. The primary reason is rapid growth in various business sectors and the scope for profitable business opportunities.
In fact, as of FY 2020, in India, the M&A deal value jumped 33% and reached a valuation of about 36.9 billion USD.
One of the most significant reasons for the increasing success of M&A transactions and other cross-border deals is how leading business consultants in India are helping foreign investors frame cross-border transactions with detailed market analysis and personalized strategies.
Let’s have a look.
The Choice between Merger and Acquisition as Per Business Needs
Merger and acquisition is an act of improving a firm’s market position in a particular industry by consolidating another competing company or its assets. However, though both terms are often considered the same, their application in a cross-border deal is significantly different.
Merger: When two companies join their forces and become a new entity, it is called a merger.
Acquisition: When one company completely takes over another firm or buys all its shares, it is known as acquisition.
M&A advisory firms in India help foreign investors choose between merger and acquisition after reviewing the market competition, changing business dynamics, therefore reducing investment risks.
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Selecting the Right Type of M&A Deal
There are various types of M&A deals, and they can be largely categorised as follows:
Horizontal M&A- Takes place between two firms trading on the same supply chain and having the same customer base.
Vertical M&A- Occurs between two firms with the same customer base but different supply chains.
Conglomerate M&A- Takes place between two firms that are completely unrelated to each other both in terms of the supply chain and customer base.
Concentric M&A- Occurs between two firms with the same customer base but belonging to two completely different industries.
Leading business consultant India can carry out a detailed analysis of the current market situation and assist foreign investors in choosing the right type of M&A deal as per their long-term business growth, thereby ensuring a competitive advantage for the future.
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Execution of M&A Stages
M&A advisory firms in India also help foreign investors execute the various critical stages of merger and acquisition deals, with utmost efficiency and success. These firms provide end-to-end assistance in:
- Shortlisting target profiles
- Undertaking evaluation of the target firm
- Preparing deals as per the evaluation
- Negotiation with the target firm
- Preparing the final deal
- Carrying out Due Diligence
- Post deal integration process, etc.
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Why Must Investors Take Help from M&A Consultants in India?
M&A consultants in India possess a thorough understanding of the current market condition of the country, evolving consumer behaviour, and areas of potential risk. Collaborating with an M&A consultant in India will help foreign investors get better insights into the market dynamics.
It will help them strategize the investment plan adequately. Thus, foreign investors need to avail of assistance from leading consulting firms, as it will offer:
- A better deal value.
- Competitive advantage in the market.
- Hassle-free partner search.
- Increase the consumer base.
- Diversify product portfolio in a better way.
- Secure a stronger foothold in the market.
All these factors thereby entail how business consultancy firms in India, like Tecnova, have become a reason behind the success of M&A deals in the country and why foreign investors are increasingly collaborating with such firms to plan out their investments.Mergers and Acquisition firms in India