PwC said in a report, it is time for the Indian merger and acquisition landscape that is appeared to be ‘brightly lit’ provided the backdrop of a well-developed M&A legal and regulatory framework in India but the time is yet to come.
The global consultancy firm reported, as the global economy retarded, the Indian economy stays with its toehold and Indian business houses are particularly on the vanguard of global and domestic M&A by creasing assets in the Indian business environment.
Read also – Alarming rise in Cyber attacks (70% of Nifty 50 companies vulnerable): Study
An imminent need is indicated for consolidation in various sectors, distressed assets’ sale by debt laden companies and simplification of widely dispersed group companies, wrote in the report.
Read also – Indian economy grew by nearly 7.1% in first 6 months of the current fiscal
It said, “Given the backdrop of a well-developed M&A legal and regulatory framework in India, the road ahead for the Indian M&A landscape seems to be brightly lit.”
PwC said that Indian several sectors are in consolidation mode in its report with the title ‘Merger and Acquisition: The evolving Indian landscape’.
For example, the banking sector (ING Vysya Bank’s acquisition in Kotak Mahindra), the telecom sector (Reliance Communication’s proposed acquisition of MTS India from Sistema) and the renewable energy sector (Welspun Energy’s assets are acquired by Tata Power)
The report said that e-commerce sector of India is the activity’s hotbed. The sector is now turn out in consolidation mode with the e-commerce giants such as Amazon and Uber by taking them on a dominant role and they now became an “imperative need for survive for many”.
PwC said the Indian M&A landscape has been transmuted by the latest development in the tax and regulatory environment and liberalization in foreign investment policy.
It stated, “Creating a trust or similar entity becomes pivotal to the succession plan since it can provide a good balance between owners’ desires, professional management and healthy family dynamics.”
According to PwC report, the triumph of succession planning’s objectives can be enabled by a suitably customized and designed trust structure blended strategic objectives with the regulatory, tax and legal aspects that are far more better than a will and on the point of time providing the flexibility and certainty benefit to all family members.
Share
The post Time ahead for Indian M&A seems brightly lit : PwC appeared first on Mcr World.
