Indian companies have become globally competitive and they represent global quality standards. Indian companies have been among leading acquirers from the Asia-Pacific region. This trend is going to continue for some years.
Ms Orit Gadiesh, Chairman, Bain & Company, USA and the chair of the session “Acquisitive India: An M& A Scorecard” at the India Economic Summit 2007 organised by the World Economic Forum and the Confederation of Indian Industry (CII), said that the risk-appetite of the Indian investors have increased manifold since the nineties.
Mr Neeraj Kanwar, Joint Managing Director and Chief Operating Officer, Apollo, India said that the success of a deal is reflected not only in the balance sheet of the company, but also how successfully 'people-issues' are handled post-deal.
Companies cannot ignore existing management of the acquired company and need to align themselves with the core culture of the acquired company. The integration of culture assumes important dimension to a successful M&A deal.
Mr Rajendra S Pawar, Chairman, NIIT Group, India said that the service sector acquisitions are smaller in size than manufacturing in India. The success of the services industry lies in the ability to retain talent, unlike in the manufacturing sector, where physical assets are more important.
Another factor, which determines success, is intellectual property, which can be used in the new or adjacent markets. The success rate of M&A for the IT sector is higher than 25%, which is fairly above the industry average.
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