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PGDM F02 - Mergers, Acquisitions & Corporate Restructuring

The document summarizes key findings from an Ernst & Young report on mergers and acquisitions (M&A) in India in 2015. While M&A deal volume remained similar to 2014, total deal value declined 11% due to a lack of large megadeals and weakness in commodity markets. The top sectors by deal value in 2015 were oil and gas and pharmaceuticals, while the top sectors by deal volume were technology and retail/consumer. Domestic deals made up 55% of total volume. Outbound deals from India increased deal value in pharmaceuticals and oil/gas. Pharma companies pursued outbound acquisitions to increase their customer base and expand product portfolios globally. A decline in inbound deals was driven by

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0% found this document useful (0 votes)
35 views2 pages

PGDM F02 - Mergers, Acquisitions & Corporate Restructuring

The document summarizes key findings from an Ernst & Young report on mergers and acquisitions (M&A) in India in 2015. While M&A deal volume remained similar to 2014, total deal value declined 11% due to a lack of large megadeals and weakness in commodity markets. The top sectors by deal value in 2015 were oil and gas and pharmaceuticals, while the top sectors by deal volume were technology and retail/consumer. Domestic deals made up 55% of total volume. Outbound deals from India increased deal value in pharmaceuticals and oil/gas. Pharma companies pursued outbound acquisitions to increase their customer base and expand product portfolios globally. A decline in inbound deals was driven by

Uploaded by

Shikha Shukla
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PGDM F02 - MERGERS, ACQUISITIONS & CORPORATE

RESTRUCTURING
Submission Deadline: 0900 hrs, 14 July 2016
ASSIGNMENT 1
Reference Report: PE and Outbound Drive M&A by Ernst & Young
Answer the following questions:
1. What is the difference between deal value and deal volume?
While the deal volume remained at levels similar to the previous year . The
disclose deal value declined by 11% from US$29.4 billion in 2014.
2. Why did the deal value declined in the year 2015 compared to 2014? (Give
three reasons)
a. The slump in domestic deal activity was largely due to the absence of
megadeals.
b. The weakness in global markets, owing to a weak outlook and
downturn in the commodity markets.
c. Adversely affected the domestic deal activity.
3. Which were the top two active sectors in 2015 in deal value?
a. Oil and Gas
b. Pharmaceuticals
4. Which were the top two active sectors in 2015 in deal volume?
a. Technology
b. Retail and consumer production
5. Whats the difference between Domestic, Inbound and Outbound deals?
Domestic: _ Domestic deals accounted for 55% of the total deal volume, cross
border deals contributed significantly to the deal value.
Inbound: These factors drove global buyer to remain caution about pursuing bigtickets acquisitions in the country.
Outbound: The significant increase in deal value can be attributed to a few bigticket outbound transactions in the pharmaceuticals and oil gas sectors.
6. Pharma players made outbound acquisitions to (give two reasons):
a) To Increase their customer base
b) Expand distribution reach and broaden their products portfolios.
7. The decline in inbound deal value in 2015 was driven by the following
reasons:
a. Primary driven by the global slowdown
b. A weakening of commodity prices
c. A deceleration in economy activity in key emerging markets.
8. Which three traditional retails forayed into online space to capitalize the
growing trend in online business?
a. Aditya Birla group
b. Mahindra Group
c. Tata Value Homes
9. Which were the three key Equity deals which took place in the year 2015?
a. Acquisition of TaxiForSure by Ola Cabs for US $ 200 million in cash and
equity
b. Acquisition of My greenbox , an online grocery delivery service by
Grofer

c. Proposed acquisition of Zoo Roams By Oyo Roams in an all- equity


deal.
10.Why did Snap deal acquired Reduce Data Inc. (answer in one sentence only)
Ans:- Acquisition of reduce data Inc.. an advertising platform by snap deal.

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