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· Total deal value in Q2 2024 marked a two-fold increase from Q2 2023.
· Domestic transactions grew by 37.6%, reaching 117 deals, up from 85 deals in Q2 2023.
Bengaluru – July 25, 2024: M&A activity in India continued its upward trajectory in the second quarter of 2024, marking growth for the fourth consecutive quarter, as revealed in Forvis Mazars in India’s latest M&A Deal Tracker Report. This comprehensive report explores key trends and transactions shaping the M&A landscape. Notably, Q2 2024 saw a total of 174 deals, amounting to US$6.9bn. The Domestic category emerged as the largest segment within the M&A landscape, accounting for 72.4% of the overall deal value and being the only category to experience growth in deal volume during this period.
Akhil Puri, Partner, Financial Advisory, Forvis Mazars in India, said, “M&A activity in Q2 2024 saw a remarkable surge, with deal value and volume both experiencing substantial increases, rising from US$2.3bn in Q2 2023 to US$6.9bn in Q2 2024, an impressive 200% growth. This robust performance highlights the resilience of the Indian market amidst global uncertainties. Despite a reduction in cross-border transactions due to geopolitical challenges, domestic investments have shown remarkable strength, continuing to lead the M&A landscape and representing approximately 72% of the total deal value across various sectors. This resilience underscores the attractiveness of the Indian market and its potential for sustained growth.”
Quarter-wise M&A activity:
M&A activity in India continued its upward trend in the second quarter of 2024, witnessing growth for the fourth consecutive quarter. During Q2 2024, India saw a total of 174 deals, amounting to US$6.9bn. This represents a significant two-fold increase in overall deal value and a substantial 46.2% growth in deal volume compared to Q2 2023.
Domestic M&A trend:
The Domestic category emerged as the largest within the M&A landscape, accounting for 72.4% of the overall deal value and being the only category to experience growth in deal volume during Q2 2024. Domestic transactions grew by 37.6%, reaching 117 deals, up from 85 deals in Q2 2023. The overall value of domestic transactions saw a massive 154.2% increase, reaching US$5.0bn, up from US$2.0bn in Q2 2023.
Inbound M&A trend:
The Inbound M&A category exhibited mixed results in Q2 2024. While the number of inbound transactions declined by 15.4% to 11 deals (the lowest in the last four years), the overall deal value for the category increased by 185.6%, reaching US$313.8m, compared to US$109.9m in Q2 2023.
Outbound M&A trend:
The Outbound M&A category also showed a similar trend. While the overall transaction value expanded by 422.2%, reaching US$1.2bn compared to US$233.9m in Q2 2023, the total number of outbound transactions decreased by 33.3% to 14 deals, down from 21 deals in Q2 2023.
M&A transaction size trends:
All categories saw a significant increase in activity during Q2 2024 compared to Q2 2023. The US$0m to US$5m category was the most active in terms of volume in the last four years, and the fastest growing, with a 244.4% increase compared to Q2 2023. The US$100m to US$1bn and US$25m to US$100m categories saw 133.3% and 62.5% growth, respectively.
In terms of deal value, the US$100m to US$1bn category grew by 243.2% (US$2.8bn), and the US$0m to US$5m and US$25m to US$ 100 m categories saw substantial growth of 177.9% and 44.7%, respectively.
The Q2 2024 M&A deal tracker report by Forvis Mazars in India offers valuable insights into India’s dynamic M&A landscape, highlighting a continued robust growth trajectory in deal value and volume. The significant increase in domestic transactions and notable inbound and outbound deals underscore the country’s evolving position as a vibrant M&A hub. As India navigates geopolitical uncertainties and macroeconomic challenges, the emphasis on policy stability, strategic M&A activity, and innovative sectors like Generative AI will be crucial in shaping the future of the M&A market. This report provides a comprehensive view of the key trends and transactions driving the M&A landscape, offering valuable guidance for stakeholders and investors in the coming quarters.