- Unprecedented Growth: India’s M&A landscape witnessed a remarkable 66% surge in deal value in 2024, reaching $1.6 trillion and outpacing global growth of 10%.
- Key Sectors Driving Momentum: The technology, media, industrials, and healthcare industries spearheaded this boom, with AI, digital technologies, and domestic consolidation playing pivotal roles.
- Economic Tailwinds: Robust GDP growth forecast of 6.3%, the “Make in India” initiative, and a streamlined regulatory environment fostered business confidence and foreign investment.
- Historical Context: While reminiscent of the 2015-2016 boom, the current surge is more sustained, reflecting unwavering confidence amidst global economic headwinds.
- Major Deals: Notable transactions include CVC Capital’s $410 million investment in Aavas Financiers, Advent’s $1 billion Suven-Cohance merger, and Warburg’s $550 million Shriram Housing acquisition.
- Regional Outperformance: Contrasting the 5% decline in Asia-Pacific deal value, India’s resilience underscores its unique appeal as an investment destination.
- Potential Challenges: Rising interest rates, geopolitical tensions, regulatory scrutiny, and post-merger integration hurdles could impact future deal momentum.
- Sustained Outlook: Experts predict M&A activity will continue for 2-5 years, driven by companies seeking assets, record private equity dry powder, and government clean energy and AI initiatives.
- Strategic Positioning: India’s positioning as a global hub for AI, digital technologies, and renewable energy is expected to drive future M&A in these sectors.
- Capitalizing on Opportunities: To stay ahead, CEOs and investors must leverage insights, monitor economic factors, and make informed decisions to capitalize on India’s sustained M&A momentum.
India’s M&A Surge: 66% Growth Outpaces Global Average in 2024
