Mergers and Acquisitions of Indian companies (With focus on challenges in LBOs)

Abstract

India is witnessing an upward trend in the number of Merger and Acquisition (M&A) deals happening this year with total deals worth USD 16.7 billion in the first five months. May 2014 alone saw 52 transactions worth USD 4.4 billioni, approximately 159% higher than the value of deals done in the same period last year. This sudden resurgence is synchronous with the buoyant mood and strong economic outlook the country is witnessing after the general elections. Among the deals those got completed in May, three were big ticket transactions (i.e. over a value of USD 500 million). Merger and Acquisitions are good for the economy as they intend to increase the performance of both the acquiring and target companies. With an upsurge in the number of transactions, it is the right time to study the financing patterns in such deals and the factors those influence such decision.