IIPM: Are M&As back in Vogue?

The Total Global deal value for Q2 2011 stood at $499 billion, way ahead of The Same Period in 2010 and 2009, but down on the $580 billion that we saw in Q1 2011 and the $671 billion seen in Q1 2010. The message, then, is that Transactions are coming back, but if anyone thought that the recovery was going to be speedy, they would be greatly mistaken.

Private players are on a roll

PHBs in Brazil, Russia, India and China are among the most acquisitive in the world with around 44% of them considering an acquisition (an increase of some 17% on last year). Desire to access new markets, build scale and acquire new technology or established brands have been the principal driving force for these companies to focus on acquisitions. Interestingly, among the BRIC nations, Indian PHBs are the keenest to make cross border acquisitions, with as many as 40% expecting their acquisitions to be international. In fact, 40% of the Indian PHB deals are expected to be international. Considering that Indian companies are now well experienced in dealing with overseas M&A markets, soon we may get to see some big moves from India Inc.

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