After a torrential record-breaking year of M&A activity in 2021, the deal makers appear to have stepped off the accelerator in the first half of 2022. The global M&A activities, recovering from the COVID-19 pandemic reached unprecedented levels of USD 5.9 trillion in deal values in 2021 according to the ‘Global M&A Report Midyear 2022’ by Bain & Company. According to the same report, the aggregated global deal values by the first half of 2022 reduced by 20% compared to the previous year but could still reach an extrapolated value of USD 4.7 trillion in deal value by the end of 2022. ...read more
M&A India Desk: Investing in and from the world's fastest growing economy
According to the IMF, India remains one of the fastest growing economies in the world. Therefore, India is an attractive investment destination for German companies. Germany is India's largest trading partner in Europe and the first largest direct investor in India since 2020. At the same time, as a high-tech location, Germany is an increasingly important strategic location for Indian companies.
Germany invested over $12.2 billion in India between 2000 and 2020. The main areas of investment were transportation, electrical equipment, metallurgical industry, services (especially insurance), chemicals, construction, trade and automobiles. There are currently more than 1,600 German-Indian cooperations and 600 joint ventures on the Indian market - and the trend is increasing. German investors are banking on the growth potential of the Indian market and sometimes see the acquisition of an Indian company as an opportunity to quickly establish themselves in the Indian market. However, startups and other companies are also increasingly using the expertise in the IT sector in India to expand their market.
Indian companies are expanding in international markets in view of the economic growth in India - especially also to gain access to the latest technologies, attractive markets and new customers. With its central location in the heart of Europe and as a high-tech location, Germany is a preferred target for start-ups and acquisitions. As a result, Indian companies are currently making targeted acquisitions in Germany and Europe. In addition to the high quality of the German infrastructure, Indian investors appreciate the favorable environment for research, development and innovation, the political stability and the low level of corruption as well as the high level of education of the workforce.
Whatever the interests at stake: Investments and business relations from and to India not only hold great potential, but also, due to a foreign culture and different legal systems, some pitfalls that can be avoided by consulting experts.
We accompany you in your investment efforts in India and vice versa and support you with our M&A India Desk in the areas of auditing, tax advice, legal advice and corporate advice. In addition to professional expertise, our bilingual team also brings the necessary international experience to the table, making us a strong partner at your side in India, just as our Indian clients benefit from our experience in cross-border projects.
RSM Ebner Stolz is member of the Indo-German Chamber of Commerce.