Merger and acquisition transactions and private equity deals surpassed previous records by crossing the $100 billion mark in 2018. M&A transactions aggregated to $90 billion and PE reporting deals to $20 billion.

M&A deals more than doubled from $40.425 billion to $90.211 billion to take the total deal value from $60.920 billion in 2017 to $110.661 billion in 2018. While domestic M&A deals grew multi-fold from $5 billion to $34 billion, cross-border deals too grew from $8 billion to $38 billion, finds Grant Thornton.  

“The ongoing capital market and regulatory reforms, constant amendments to reforms like Goods and Services Tax (GST), Real Estate Regulatory Authority (RERA), Insolvency and Bankruptcy Code (IBC), and efforts to improve ease of doing business in the country are signs of increasing depth and maturity, making the Indian markets more attractive,” Prashant Mehra, Partner, Grant Thornton India LLP said.

Further, the surge in the M&A deal activities was mainly driven by the objectives of consolidating by expanding the market share, buying technology and diversifying market presence. Additionally, M&As have also proven to be effective in bridging the gaps in the market, resource and the growth outlook among business partners. Corporates improved their inorganic growth strategy through divestment of non-core assets, expanded into newer business segments, and hunted for bargain purchases following the introduction of IBC during 2018, said Mehra.