BENGALURU: Mergers and Acquisitions (M&A) can be an attractive growth engine for both acquirers as well as sellers if done with the right strategic, financial and execution discipline, said a new report by BCG India.
The report on M&A in India said that from new-age start-ups in hyper-growth mode to larger and mature corporates, M&A activity has covered the full spectrum of companies. However, the report said given macroeconomic uncertainty, there is some degree of conservatism being observed as acquirers appear to be taking relatively smaller bets, translating into a lower number of large deals both globally as well as in India.
Kanchan Samtani, MD and Senior Partner, BCG India, Asia-Pacific Head of M&A and Transactions, said, “Irrespective of your company’s current scale and maturity, M&A can be an important lever to accelerate growth of your core business, tap into adjacent revenue pools and develop long-term capabilities.”
There has been a 40 per cent decline in global deal value in 2022 compared to 2021. However, in India, M&A activity remained vibrant as there was about 114 per cent increase in deal value in 2022 compared to the previous year.
Swift capital deployment in the coming quarters is imperative to deliver returns for both private and public market investors given the buffer that has steadily built up. M&A will be one of the key channels for capital deployment, said Akshay Kohli, MD and Partner, BCG.