Market Insights Financial Corporate Finance

Mergers and Acquisitions - India

India

The transaction value in the Mergers and Acquisitions market is projected to reach €34.74bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 20.29% resulting in a projected total amount of €41.79bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €74.09m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in India has been experiencing a significant uptick in activity in recent years.

Customer preferences: Indian companies are increasingly looking to expand their market presence, diversify their offerings, and acquire new technologies through M&A deals. This trend is driven by the desire to stay competitive in a rapidly evolving business landscape and meet the changing demands of customers in a digital-first economy.

Trends in the market: One notable trend in the Indian M&A market is the rise of cross-border acquisitions, with Indian companies eyeing opportunities abroad to access new markets, resources, and capabilities. Additionally, there is a growing interest in consolidation within domestic industries, leading to larger and more strategic M&A transactions. Moreover, the influx of private equity investments has also been fueling M&A activity in India, providing companies with the necessary capital to pursue acquisitions.

Local special circumstances: India's regulatory environment plays a crucial role in shaping the M&A landscape. The government's push for ease of doing business and reforms in sectors like banking, insurance, and retail have created a more conducive environment for M&A transactions. Furthermore, the cultural and business dynamics in India, such as family-owned businesses and the importance of relationships in business dealings, influence the way M&A deals are structured and executed in the country.

Underlying macroeconomic factors: The strong economic growth, increasing consumer demand, and a young demographic profile in India are key macroeconomic factors driving M&A activity. Companies are looking to capitalize on the country's growing middle class and rising disposable incomes by expanding their market reach and enhancing their product offerings through strategic acquisitions. Additionally, the availability of cheap credit and favorable interest rates have made it easier for companies to finance M&A deals, further boosting activity in the Indian market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.