India’s M&A Deals Surge by 66% in 2024
In the first nine months of 2024, mergers and acquisitions (M&A) in India have surged by 66% in value compared to the same period in 2023, according to a report by Boston Consulting Group. This growth contrasts with a global increase of 10% and a decline in the Asia-Pacific region.
Key Drivers of Growth
India’s M&A activity is driven by sectors like technology, media, industrials, and healthcare. The ‘Make in India’ initiative and India’s growing ties with the US and Europe have contributed to this growth.
Sector Contributions
Technology, media, and telecommunications accounted for 40% of the total deal value. Industrial companies and healthcare targets also played significant roles in the M&A landscape.
Future Outlook
Dhruv Shah, Managing Director and Partner at BCG, stated that India’s outlook for deal-making remains strong, with companies seeking growth opportunities and investors ready to deploy capital.
Global Challenges
Globally, increased regulatory scrutiny is affecting deal timelines, with many deals taking longer to close than initially projected.
Doubts Revealed
M&A -: M&A stands for Mergers and Acquisitions. It is when two companies combine to form one (merger) or when one company buys another (acquisition). This helps companies grow and expand their business.
Surge by 66% -: A surge by 66% means that the value of M&A deals in India has increased by 66% compared to before. This is a big jump, showing that more companies are joining together or buying each other.
Global Trends -: Global trends refer to patterns or movements that are happening all over the world. In this context, it means how M&A deals are changing in different countries around the world.
Asia-Pacific region -: The Asia-Pacific region includes countries in Asia and the Pacific Ocean area, like China, Japan, Australia, and others. It’s a big part of the world where many businesses operate.
‘Make in India’ initiative -: ‘Make in India’ is a program started by the Indian government to encourage companies to manufacture their products in India. It aims to boost the economy and create jobs.
Regulatory scrutiny -: Regulatory scrutiny means that the government is closely watching and checking companies to make sure they follow the rules and laws. This can affect how easily companies can merge or acquire others.