| Though there has been a surge in mergers and acquisitions (M&As) and private equity deals in 2005, from $13.4 bn in 2004 to $20.2 bn in 2005, consulting firm Grant Thornton India is of the view there's still plenty of room for growth this year. For one, of the cross-border M&A deals (56 per cent of the 343 M&A deals were cross-border ones), the deal size was relatively small, showing that Indian businesses are still being cautious and feeling their way forward "" while the average size of an M&A in India by a foreign firm was $92 mn, the average size of an overseas M&A by an Indian firm was only $32 mn. In overall terms, the deal value of $20.2 bn was under 4 per cent of market capitalization as compared to the global average of 8 per cent; the deals covered only 350 of the nearly 6,000 listed firms; and the total deal value was under one per cent of global deal values. |
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