Mergers and acquisitions are increasingly becoming a core growth strategy for India Inc, with annual deal volumes more than doubling since fiscal 2017, as companies look to scale faster, enter new markets and acquire capabilities that could take years to build organically, according to Crisil Ratings.
For investors, however, the key differentiator is execution, it said. The ratings firm said its review of 100 large debt-funded acquisitions found that two in three broadly met expectations, with successful deals delivering 20-80% scale expansion within 1-2 years, wider geographic reach and margin improvement from the second year as synergies materialised.
