New Delhi: Driven by improved liquidity and
business confidence, mergers and acquisitions as well as
private equity activities in the country are showing signs of
recovery and the deal space is likely to see an uptrend in the
coming months, experts said.
"The optimistic outlook of the global markets is now
reflecting on the transactions landscape of the country.
"The current quarter has set the ground for substantial
recovery in the Indian transactions market driven by easy
liquidity and increasing investors appetite," global
consultancy firm Ernst & Young National Director and Partner
Transaction Advisory Services Ranjan Biswas said.
Echoing similar opinion, Grant Thornton Partner
Specialist Advisory Services C G Srividya had said: "There has
been a stable level of M&A activity in the month of August
2009. With 25 deals valued at about USD 650 million, the
transaction values have been primarily driven by significant
domestic deals."
According to Ernst and Young, the third quarter of 2009
saw as many as 180 merger and acquisition as well as private
equity deals, with domestic transactions contributing to about
57 percent of the total transaction value.
Meanwhile, as per Grant Thornton, the total number of M&A
deals during the first eight months of 2009 stood at 183 deals
with an announced value of USD 6.56 billion. The total number
of private equity deals till August this year reached 131
deals with an announced value of USD 5.61 billion.
Going forward, the overall transactions climate in the
country is likely to improve in the coming months, Ernst and
Young said in its latest transaction quarterly report.
"Given the improving liquidity conditions in the economy
coupled with increasing business confidence, firms are
expected to tap the inorganic route as they look to grow in
size," Ernst & Young said.
Further, with the pace of global economic deterioration
slowing down, the investment appetite of private equity fund
houses is expected to witness an upward trend, it added.
Bureau Report