The post lunch session of the confluence chaired by Prof. Vinaysheel Gautam threw light on the much talked about issue of “Mergers & Acquisition”. Prof Gautam in his very own remarkable way illustrated with various examples on how M&A between two organization has its own chemistry and its success depends on the special alchemy brought in by synergy.
Mr. Nitin Sood, CFO for PVR Ltd., the first to put forward his views pointed that Indian business being predominantly family owned is still in the initial phase of M&A compared to west. He identified, buoyancy in the Indian space and companies going public, as the major driving force behind companies going for M&A. He added that synergy is the magic wand that helps in revenue enhancement and cost savings.
Mr Gagan Bakhshi, Director M&A Interglobe Enterprises, too in his very witty style emphasized on synergies aspect and explained financial gain, revenue enhancement and cost saving impact of synergy among the companies involved in the deal.
Mr. Rajendra Nalam, Partner BMR advisors, explained how M&A opens new avenues to expand into but at the same time cautioned that M&A’s are not always a productive option specially in cases when the chemistry between the two entities is not great enough to carry the momentum for growth.
Mr. Alok Verma, Partner Technova, was next to put his views. He concentrated on Indian aspect of the business and M&A activities involving Indian Businesses. According to him M&A for Indian family run business is an added complex issue due to hidden assets and incomes. He also shed some light on Post merger issues like valuing hidden cash flows which are quite common in Indian Family business.
0 comments:
Post a Comment