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| As a thought leader for cross-border transactions between US and India, IMaCS Virtus Global Partners prepares and sponsors a number of industry-specific financial trend reports and presentations. The latest reports, market analysis and presentations can be found below: |
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| Low valuations, bankruptcy auctions, and distress sales characterized more than half of the US-bound acquisitions by Indian companies in 2009. Indian companies accounted for a total of 15 US-bound acquisitions with a cumulative transaction value of over $300 million. This represents a 75% decrease over the 62 transactions in 2008 and a 90% decline in terms of transaction value. |
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| India continues to offer great investment opportunities not only in the knowledge sectors, but also in more traditional sectors such as manufacturing, banking, pharmaceuticals and telecom which are likely to attract significant amounts of investment. Deal Structuring parameters in India are driven by factors such as exit, valuations, currency risks, tax consideration and government regulation. |
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| In the first nine
months of 2009, there were 78% fewer US-bound
transactions from India compared to the
same period last year. Most transactions were less than
$50 million in size compared to the three billion
dollar plus transaction sizes seen
the previous year. Unlike last year, some of these
transactions involved minority stake. |
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| A sharp decline in growth projections, lack of acquisition financing, and a decrease in overseas demand with the global economic recession has caused Indian companies to put brakes on their global growth plans. Even with Sterlite’s acquisition of Asarco for $1.7 billion announced on March 8th, there were only three US-bound transactions year-to-date as compared to 12 transactions in the same period last year. |
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| In 2007, Indian companies accounted for a total of 83 US-bound acquisitions with IT/ITES remaining the most acquisitive industry in India. Deal sizes of less than $25 million accounted for 76 % of the 2007 US-bound acquisitions volume reflecting the increasing pressure to gain scale amongst smaller companies. |
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