In
the current corporate scenario, mergers and acquisitions have attained
considerable significance. Merger and
Acquisition Strategies have been opted by the Indian firms as it is a very
important option due to tough competition in international market.
Now let’s discuss the factors responsible for favorable Mergers and Acquisitions deals in India. Dynamic
government policies, corporate investments, economic stability, and experimental
behavior of Indian industrialists are some of the main factors. However there are certain legal challenges are
faced in case of M&A in India such as legislative requirements (relevant regulators approvals),
and never-ending compliances. In case of any M&A transaction, due diligence
is a key tool, still risk cannot be evaluated. For example there is no platform
which can give the details of litigation proceedings – In the case of Ranbaxy,
where Daiichi Sankyo were not aware about the US dispute and it came in to its
knowledge after acquisition took place. For merger & acquisition, due
diligence is required by a proper team of experienced professionals.
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