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India Is Seeing Deal Activity Comparable To 2007 Levels: KPMG

Leif Zeirz, Rohit Berry of KPMG discuss the current M&A and private equity (PE) environment and the key factors influencing deal making in India

Mumbai: Merger and acquisition (M&A) activity in India surged in 2017. Deal values increased by 53.3% while deal volume rose by 2.5%, fuelled by a wave of consolidation across sectors. With deal activity globally touching the peak levels of 2007, these are interesting times for deal advisers for India as well, where valuations continue to be high despite some moderation in the recent months.

In an interview, Leif Zeirz, global deal advisory leader at KPMG, and Rohit Berry, deputy head of deal advisory at KPMG in India, discuss the current M&A and private equity (PE) environment and the key factors influencing deal making. Edited excerpts:

It’s been a renewed period of global growth. These must be very interesting times for deal advisers.

Zeirz: Generally we are living in very good times as deal advisers. The markets globally are very positive and while a year or two ago this was mainly a statement that was valid for the Western and more mature economies, now basically across the board we see a very positive market environment. This is mainly driven by the very low interest rates and relatively cheap money, especially in the Western economies, (as well as the?) high liquidity situation with many companies backed by solid profit situations. Yes, there was also an impact of lower commodity and oil prices, which benefit some countries (like India) and may not be as good for the exporting countries in this sector.

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