Despite pandemic, M&A deal space intact

Notwithstanding the impact of the second wave of Covid-19 in India, the first half of this calendar year recorded deal activity worth around $40.7 billion, according to a report.

During January 1 to June 15, corporate India announced deals worth $40.7 billion through 710 transactions, registering a two per cent rise in value terms over the second half of 2020, according to the PwC India report titled, "Deals in India: Mid-year review and outlook for 2021-Resilience and Recovery'. Private equity (PE) activity in the January-June period this year touched an all-time high of $26.3 billion, up 25 per cent over the corresponding period a year ago. The surge in deal activity was fuelled by billion-dollar buyouts and numerous large fundraising rounds by start-ups, boosting many of them into the unicorn club. PE investors are also shifting their focus towards sectors such as technology and healthcare which show stronger potential for growth, the report said.

Key themes emerging in 2021 due to the uncertainty of current times are a growing divergence in asset valuations, the acceleration of deals in digital and technology, and increasing attention toward environmental, social and governance (ESG) matters.