Growing Need for Merger and Acquisition Strategy Consulting Firm in India

Merger and Acquisition Strategy Consulting Firm in India

  •  
    a peek into Merger and acquisition
  •  
    A sneak peek into the biggest Merger and acquisition
  •  
    (A peek into M&A) Infographic
  •  
    Mergers and Acquisitions: Overview
  •  
    Merger & Acquisition: All you need to know

Even amidst the COVID-19 pandemic and the subsequent slowdown of economic activities, the M&A operation in India achieved a considerable boost. In fact, as per IBEF reports, transactions between India and USA dominated and accounted for about 31 % of the global Merger and Acquisitions activities. This is true for both in-bound and out-bound cross-border deals.

In FY 2020, apart from Facebook and Google’s joint stake-purchase of 10.1 billion USD in Reliance Jio, there were 9 other transactions. These were each worth over 1 billion USD. Also, growing business opportunities across various sectors are making Merger and Acquisitions activity in India increasingly competitive.

Foreign investors now need thorough market analysis and end-to-end assistance in securing the best M&A deals. This, in turn, has led to the growing demand for a strategy consulting firm in India.

3 Main Reasons for the Growing Need of Mergers and Acquisition Firms in India

Mergers and Acquisition Firms in India

Help Choosing Between Merger and Acquisition

Merger and acquisition refer to the act of consolidating a company or its assets to gain a competitive advantage in a particular industrial market. However, there is a considerable difference between the terms Merger and Acquisition.

  •  
    Merger – The terms mergers and acquisitions are often used interchangeably, but they differ in meaning. Merger refers to a financial transaction between two companies by which they join their forces. Thereby, they begin to exist as a new corporate entity.
  •  
    Acquisition– Acquisition, on the other hand, is the act of buying all the market share of a company and consolidating all its assets by another firm such that it ceases to exist independently.

The term ‘mergers and acquisitions’ (M&A) refers to the process by which one company joins another, either by combining (company merger process)

Amidst the growing competition in the market, it is extremely crucial to understand the difference between merger and acquisition to make an informed decision.

Leading mergers and acquisition firms in India helps foreign organizations understand the implication of both merger and acquisition and the type of effect it will have on their business goals.

To Choose the Right Type of Merger and Acquisitions Deal

Strategy consulting firms in India are also in high demand these days as they help foreign investors decide adequately as to which type of M&A deal will align perfectly with their future goals.

Following are the various types of Mergers and Acquisitions that primary center cross-border transactions:

  •  
    Horizontal – Merger and Acquisitions deal between two companies that belong to the same industry and have the same supply chains.
  •  
    Vertical – Merger and Acquisitions deal between firms that have a similar supply chain but belong to different industries.
  •  
    Conglomerate – Merger and Acquisitions transaction between two firms that belong to separate industries and that have distinct supply chains.
  •  
    Concentric – Merger and Acquisitions deal that takes place between two firms that have the same customer base but belong to separate industries.

To Properly Implement the M&A Stages

The need for strategy consulting firms in India is also growing among foreign investors due to the comprehensive support they provide to efficiently execute the stages of an M&A deal. This includes:

  •  
    Identifying target firms and shortlisting profiles.
  •  
    Preparing deals based on the current valuation and SWOT analysis.
  •  
    Undertaking negotiations and structuring a final deal.
  •  
    Performing Due Diligence to prevent discrepancies in documents submitted by the target firms.
  •  
    Last but not least, end-to-end assistance in the post-deal integration process through thorough financial, organizational and human resource planning.

The importance of M&A activity is manifold. It helps increase the market share, diversify the product portfolio, secure a strong foothold over the market, etc.

However, without proper planning and detailed market analysis, investors are bound to falter in securing profitable Merger and Acquisitions deals for themselves. Hence, foreign investors look for assistance from M&A consultancy firms like Tecnova to mitigate risk and secure long-term profitability.

Author’s Bio

Tecnova is a leading strategy consulting firm in India that offers end-to-end assistance in framing India-centric market-entry strategies. It has over 35 years of experience and is present in more than 15 international markets. Tecnova is the exclusive Indian Member of “Pandion Partners”, a leading international network of independent Investment Banking boutiques and Corporate Finance Advisory firms, offering seamless services on mid-market transactions.

Reference Links: