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India emerged as global M&A hotspot in 2022: Bain & Company report

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India bucked the global trend with the volume and value of strategic mergers and acquisitions (M&A) hitting an all-time high in 2022, a report found Tuesday.

Record levels of cash and asset availability fueled an explosion with deal volume up 36 percent and deal value up 139 percent by 2022, according to Bain & Company annual report.

“We have seen four consecutive years of growing deal volume and value, with 2022 being another record year. This is in stark contrast to the mood and momentum in the rest of the world,” he said. Karan Singhmanaging partner, Bain and Company India.

Strong M&A activity was seen across all sectors, including financials, utilities, manufacturing and healthcare.

Environment, social and governance (ESG) is a new theme and India is emerging as a renewable energy hotspot, Singh added.

Consumer technology has seen the highest consolidation of start-ups, followed by edtech and fintech.

“M&A activity is strong across the board, from conglomerates acquiring new engines of value creation to insurgents acquiring new segments and acquiring new capabilities,” said Vikram Chandrashekharpartner, Bain & Company.

In addition, India is becoming an important alternative for global companies eager to diversify their supply chains.

“Nearly 65 percent of executives we surveyed said they expect M&A activity to remain strong in 2023, significantly higher than the global average of 37 percent,” said Chandrashekhar.

ALSO SEE:
Indian economy is expected to grow 6-6.8% in FY24; private capital expenditure necessary for job creation: Economic Research 2023
Capital spending target of ₹7.5 lakh crore for FY23 to be met: economic survey

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