India Business Journal - PwC India sees a big jump in M&As in small- and mid-size companies

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PwC India sees a big jump in M&As in small- and mid-size companies

IBJ Bureau
Jun 17, 2024

PwC India anticipates an upswing in the Indian markets, especially in small- to mid-size merger and acquisition (M&A) transactions and growth funding, driven by increasing investors’ confidence.

The year 2023 witnessed the emergence of a nuanced M&A landscape, with investors showing interests in diverse strategies and larger-scale ventures even amid an overall decrease in private equity (PE) investment, Sanjeev Krishan, the chairperson of PwC in India, has said.

While PE deals were higher in volume, strategic deals dominated the top deals, and domestic deals with group-level consolidations were a prominent theme. The first quarter of 2024 marked resurgence in deal value and volume.

According to a PwC report, top 10 deals of 2023 included joint venture buyouts, strategic investments, PE buyouts and stock mergers, and contributed 21 per cent to the total deal value.

“On a sectoral basis, traditional sectors including retail and consumer and healthcare and pharmaceuticals are in the lead. We anticipate an upswing in the India markets, especially in small- to mid-size M&A transactions and growth funding,” Mr Krishan told the PTI.

Optimism around M&A is based on three key factors – improving financial markets indicate an increase in investor and CEO confidence; deal-making has reached an inflection point with pent-up buyer demand and a build-up in seller assets; and accelerating global megatrends have created a need for firms to reinvent their business models, which can be accelerated through M&A, adds Mr Krishan.