2018 was a blockbuster year for deal-making in India, with
M&A value exceeding an unprecedented USD 100 billion mark. The
year also witnessed a wide range of M&A transactions, including
pure play PE/ VC deals, sophisticated platform investments, large
consolidations, buy-out transactions etc. Considering the uncertain
political and economic climate of 2019 (both domestic and global),
we identify some of the key trends/drivers for M&A activity in
2019:
A. Capital Access Constraints – Financial Services
Historically, the financial services sector has been one of the
most active in the Indian deal landscape. However, given the recent
liquidity crisis spurred by asset-liability mismatches, NBFCs/ HFCs
across the board are finding it difficult to find bank leverage for
further business expansion. As a result, valuations are predicted
to be moderated, thereby attracting equity investments into the
financial services space. We also foresee significantly high level
of
