India’s M&A activity in 2023 highest in a decade: Bain & Co.
- IBEF
- January 31, 2024
Mergers and acquisitions (M&A) activity in India surged in 2023, according to a report by consultancy firm Bain & Co. The report reveals that Indian companies executed over 90 M&A deals valued at approximately US$ 32 billion in 2023, with sectors like renewable energy, infrastructure, logistics, and manufacturing accounting for one-third of the deals in the past 18 months. Despite a global slowdown in M&A activity, India is anticipated to sustain a similar pace of deals in 2024, driven by attractive opportunities and assets, along with favourable policies. The survey also indicates that more than 80% of respondents expect to close a comparable number of deals or more in 2024. The bullish market sentiment is fuelled by expectations of continued or improved conditions across various sectors. In 2023, mid-market acquirers, with revenues up to US$1 billion, constituted half of the M&A transactions, aiming to strengthen their market positions. Indian conglomerates also engaged in acquisitions to reshape portfolios and generate new avenues for growth. Globally, M&A activity declined by 15% to US$ 3.2 trillion in 2023, marking the lowest point in a decade, influenced by factors such as high interest rates, regulatory scrutiny, and cautious dealmakers responding to mixed macroeconomic signals. Looking ahead, companies are eyeing assets that did not enter the market in 2023, anticipating increased competition for assets when the M&A logjam breaks with stabilizing interest rates.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
