Merger and Aquisition

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WHAT IS PROJECT ALL ABOUT

If we talk about history of mergers & acquisitions in our country then, there’s hardly been any case of Indian companies acquiring American-European entities. However, this scenario has all of a sudden come into the limelight of business world. Nowadays, news of Indian Companies acquiring foreign businesses is more common than it was a few years back.

Well if we talk about the sudden advancement in the Indian business world then, it wouldn’t be surprising to have mentioned the factors contributing to the welcoming change thereby, Extra cash with Indian corporate, Government policies and newly found dynamism in Indian businessmen have all contributed to this new acquisition trend. There is a sense of aggression in today’s businessmen of our Indian companies whose eyes are all set to look at North American and European markets to spread their wings and become the global players.

It isn’t that our companies have been asleep all this while when the world was moving towards globalization, we do have our IT and ITES companies who have already made a strong mark of its presence in foreign markets; however, other sectors have been a little slow in the race but, they are growing rapidly. The increasing engagement of our companies in the world markets, and particularly in the US, is not only an indication of the maturity reached by Indian Industry but also the extent of their participation in the overall globalization process.

A merger is such a tool which can be used by companies for the expansion of their operations with the aim of increasing their long term profitability. Usually mergers occur with a mutual consent of both the parties where executives from the target company help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties. On the other hand, acquisitions happen through a hostile takeover by purchasing the majority of outstanding shares of a company in the...