The mergers and acquisitions (M&A) activity of India Inc seems to be running out of steam as the deal value has fallen 71 per cent in the first three months of this calendar year, compared with the same period in 2007.
While there has been a marginal decline in the number of deals from 148 to 125 in 2008, the deal value has seen a sharp slump from $33.85 billion to $9.64 billion, according to a Grant Thornton study.
Fears of an expanding credit squeeze in global markets have put a question mark on the M&A appetite of companies, more so because financing has become a challenging task. Global markets have plunged more than 25 per cent since last year, putting brakes on the expansion plans of companies.
Even though the M&A drive of India Inc has witnessed a slowdown, India Inc’s acquisition spree is restless with outbound deals continuing to steal the show. And if experts are to be believed, 2008 will see more outbound deals than inbound ones.
Read more in The Business Standard article.
Showing posts with label Merger and Acquisitions. Show all posts
Showing posts with label Merger and Acquisitions. Show all posts
Tuesday, April 15, 2008
Thursday, May 24, 2007
US investment banker eyes Indian m-caps
US-based investment banker RSM EquiCo, the third largest investment banker in the middle-sized mergers and acquisitions (M&As) space, is visiting India to scout for similar opportunities.
It struck its first deal in the Indian mergers and acquisitions space nearly two months back when the domestic machine tool company, Batliboi acquired Canadian Quickmill for Rs 22 crore.
“The middle-sized companies in India have an excellent opportunity to expand, by acquiring businesses outside. What I observe is, they have a great appetite for growth and we are offering them an opportunity to partner similar-sized global firms,” Hector J Ceullar, president, RSM EquiCo Capital Markets said.
The investment banker is bullish on the energy, healthcare and financial services sectors and is meeting nearly 15-20 companies with investment proposals.
Last year, M&A deals worth $20 billion took place in the country. Acquisitions worth $5 billion were purely domestic while the remaining $15 billion were cross-over deals, of which $10 billion was outbound.
Read more in The Business Standard article.
It struck its first deal in the Indian mergers and acquisitions space nearly two months back when the domestic machine tool company, Batliboi acquired Canadian Quickmill for Rs 22 crore.
“The middle-sized companies in India have an excellent opportunity to expand, by acquiring businesses outside. What I observe is, they have a great appetite for growth and we are offering them an opportunity to partner similar-sized global firms,” Hector J Ceullar, president, RSM EquiCo Capital Markets said.
The investment banker is bullish on the energy, healthcare and financial services sectors and is meeting nearly 15-20 companies with investment proposals.
Last year, M&A deals worth $20 billion took place in the country. Acquisitions worth $5 billion were purely domestic while the remaining $15 billion were cross-over deals, of which $10 billion was outbound.
Read more in The Business Standard article.
Monday, May 21, 2007
Banks, FIs' overseas M&A funding jumps three-fold
Indian corporate houses have stepped up the tempo for overseas mergers and acquisitions (M&As) in 2006-07. Keeping pace with the momentum, Indian banks, with extensive global branch network, have raised the volume of funding to Indian entities for M&As.
In 2006-07, the overseas M&A funding by state-owned banks and financial institutions - State Bank of India, Bank of Baroda (BOB) , Bank of India (BOI) and Export and Import Bank of India (Exim) -- was close to $2 billion, almost a three-fold increase over the previous financial year. Private sector major ICICI Bank bags the top slot. However, bank officials refused to divulge the numbers. SBI's direct funding was close to $1 billion, BOI ($450 million), BOB ($370 million) and Exim Bank (over $400 million).
The size of funding by Indian banks is small compared with their their global counterparts due to the small balance sheet size.ICICI Bank's deputy managing director Chanda Kochhar said her bank assistance stands on three strands - advisory, structuring the finance for M&A deal and underwriting and syndication of funds.In a particular deal ICICI takes about 25 per cent funding exposure on its book and the balance 75 per cent is syndicated, she said.
Read more in The Business Standard article.
In 2006-07, the overseas M&A funding by state-owned banks and financial institutions - State Bank of India, Bank of Baroda (BOB) , Bank of India (BOI) and Export and Import Bank of India (Exim) -- was close to $2 billion, almost a three-fold increase over the previous financial year. Private sector major ICICI Bank bags the top slot. However, bank officials refused to divulge the numbers. SBI's direct funding was close to $1 billion, BOI ($450 million), BOB ($370 million) and Exim Bank (over $400 million).
The size of funding by Indian banks is small compared with their their global counterparts due to the small balance sheet size.ICICI Bank's deputy managing director Chanda Kochhar said her bank assistance stands on three strands - advisory, structuring the finance for M&A deal and underwriting and syndication of funds.In a particular deal ICICI takes about 25 per cent funding exposure on its book and the balance 75 per cent is syndicated, she said.
Read more in The Business Standard article.
Wednesday, May 9, 2007
With mkts on song, I-bankers make hay
Investment bankers never had it so good. With an increase in overseas players making a mark in the country, bankers’ bonuses have gone through the roof. A host of factors like rise in volumes in the stock market, increase in mergers and acquisitions and the consequent increase in financing, and a talent shortage in the industry have fuelled such a sharp rise.
Bonuses this time have been in the range of 100% to 300% in most of the well-known investment banks. With volumes in the stock market increasing, brokerage houses have seen one of the sharpest rise in bonuses.
They have also seen some of the largest payouts. If sources are to be believed, head of a foreign brokerage house has received one of the largest bonus payouts of over $3 million. The research head of the firm is also said to have received a similar amount.
Of late, companies have become vary of giving out names due to the fear of extortion threats to their key employees. Incidentally, though there has been a rise in the number of people who got bonuses of over $1 million, the sharpest rise has been in the $0.5- $1 million slab. The number of bankers who received bonuses in this range is said to have more than doubled.
Read more in The Economic Times article.
Bonuses this time have been in the range of 100% to 300% in most of the well-known investment banks. With volumes in the stock market increasing, brokerage houses have seen one of the sharpest rise in bonuses.
They have also seen some of the largest payouts. If sources are to be believed, head of a foreign brokerage house has received one of the largest bonus payouts of over $3 million. The research head of the firm is also said to have received a similar amount.
Of late, companies have become vary of giving out names due to the fear of extortion threats to their key employees. Incidentally, though there has been a rise in the number of people who got bonuses of over $1 million, the sharpest rise has been in the $0.5- $1 million slab. The number of bankers who received bonuses in this range is said to have more than doubled.
Read more in The Economic Times article.
Tuesday, February 27, 2007
Pune firm in largest-ever BPO buyout
In the largest acquisition by an Indian business process outsourcing (BPO) company till date, Pune-based HOV Services has acquired US-based BPO Lason for $148 million (about Rs 660 crore).
The leveraged buyout –- effective Wednesday — is valued 3.5 times the acquirer’s current turnover if its March 31, 2006, figures of Rs 164 crore are taken into account.
HOV will acquire Lason through HOV Services LLC, its wholly owned subsidiary in the US. The company has raised $188 million (around Rs 837 crore) through a combination of equity and debt instruments.The company will thus have cash worth $40 million (around Rs 180 crore) post-acquisition to finance its future activities.
Read more in The Business Standard article
The leveraged buyout –- effective Wednesday — is valued 3.5 times the acquirer’s current turnover if its March 31, 2006, figures of Rs 164 crore are taken into account.
HOV will acquire Lason through HOV Services LLC, its wholly owned subsidiary in the US. The company has raised $188 million (around Rs 837 crore) through a combination of equity and debt instruments.The company will thus have cash worth $40 million (around Rs 180 crore) post-acquisition to finance its future activities.
Read more in The Business Standard article
Monday, February 19, 2007
Apollo Hospitals to buy UK-based healthcare unit
Apollo Hospitals is looking at acquiring a UK-based hospital chain estimated to be valued upwards of £1.2 bn, in partnership with private equity players. Apollo will provide its management expertise in such deals.Apollo Hospitals has already expressed an interest in the British unit of Swedish healthcare company Capio that is owned by private equity groups Apax and Nordic Capital. The private equity owners of Capio were considering the sale of Capio's British unit in response to antitrust concerns.Apollo has also been looking at other hospitals including The Priory Group, owner of the famous rehabilitation centre for pop stars and fashion models. Priory Healthcare's major shareholder ABN-AMRO has appointed Morgan Stanley to conduct a strategic review.
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