PwC upbeat on small, midsize M&As this yr
The optimism is based on 3 key factors - the improving financial markets, a build-up in seller asset
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New Delhi: PwC India anticipates an upswing in the India markets, especially in small to mid-size M&A (merger and acquisition) 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 PE investment, said Sanjeev Krishan, Chairperson, PwC in India. 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 a resurgence in deal value and volume. According to a PwC report, top-10 deals of 2023 included JV buyouts, strategic investments, PE buyouts, and stock mergers, and contributed to 21 per cent of the total deal value. While PE deals were higher in volume overall, strategic deals dominated the top deals with domestic deals and group-level consolidations as a significant theme.
“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,” said Krishan.
He was responding to a query on the changing landscape of M&A in India. The optimism around M&A, he further said, is based on three key factors -- the improving financial markets indicate an increase in investor and CEO confidence.
