The Indian mid-market companies in industrial, chemical, auto and building materials segments are poised to lead the M&A space shortly, driven by strong economic growth and robust valuations achieved over the last decade, according to Singhi Advisors, a mid-market investment banking firm.
Over the last decade the valuation of several companies across industries has increased substantially, and to sustain growth and scalability, many companies would look for targeted acquisitions to fuel the same.
“Given the growth witnessed post the Covid-19 pandemic, valuations in the Indian landscape are strikingly compelling, in particular, in businesses from industrial, chemical, consumer, building materials and auto component. To continue with such trajectory and capitalise on the Make-in-India theme, companies will seek to look at more acquisitions to achieve scale and gain competencies globally. This momentum will further be accelerated with the China +1 strategy where many global companies will want to have a strategic foot-hold in India,” said Singhi Advisors Founder and Chairman, Mahesh Singhi .
Stas Michael, Managing Director of Mergers Alliance, said: “As we tread into 2023, we’re on course to match the frenetic M&A activity witnessed last year. With major thrust areas being the Industrials, Consumer, and Technology sectors, and with over 60 joint projects still active between member firms, we anticipate a record-breaking year in terms of bilateral deals. M&A is not just about the transaction; it represents a transformative vision.”