The Goldman Sachs Group: India CEO Expects Merger Rush to Extend in 2019

By Supriti Chatterjee | Dec 17, 2018

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India had a rocking year in terms of deals it had got. The rock leader of the Goldman Sachs Group Inc.’s helped the broker in cracking the biggest deal as AecelorMittal, Berkshire Hathway Inc. and Walmart Inc. joined the trend of buying in the same country. The next year is expected to be busy.

Goldman Hinted on the two biggest acquisitions out of three which also involves Indian Corporate in the year 2018. It happened when the transaction of $128 Billion was announced. This lead the US based investment bank on the number 2 position among the advisers, as per the statistics by Bloomberg.

You Might Also Like To Read Top Startup Acquisitions In India

It is predicted that in 2018, the financial services and technology loving consumer deals shall also involve Indian companies and this momentum will pass on to the next years as well. India has been the center of focus for all the global capital ranging from strategies to the sponsors. There are many international companies that have huge capital in hand.

There is an urgent need for them to step into the market and India has been on the number one position. Due to various economic and micro economic factors India has been successful in attracting more of inbound investments as compared to China twice in two decades.

In India there has been a whooping investment of over $39 billion by the end of 2018. Below mentioned are some highlights from the interview:

Changing Corporate India 

India is experiencing an interesting churn which is driven by capital and governance. This will give rise to a new business world by the year 2020. Another factor which is also influencing change is the Indian family concept. They wish to think and rethink about their future prospects. This can be because of the coming generation or a horizon which is uncertain or simple to utilize their capital and portfolio allocations.

IL & FS defaults are causing disruptions

Liquidity issue has been prevailing since many years now. Everyone ranging from government to central banks is trying hard to manage. Investors have matured and are serious and will have deep analysis of the disruptions statistics for the year 2008 to 2013. This will determine the time to return back n market. The market will take some time for about one and a half year to reverse back, considering the empirical evidence.

Opportunities that lie in the liquidity crunch currently faced

Today most of the financial institutions fail to pay their dues and this has can prove to be a great opportunity. This can be called as a sweet spot. One can find opportunities in a structured credit format. They can also find opportunities in purchasing the distressed loans ad even from the real estate finances.

People have been trying to figure out these opportunities almost 3 years back. At that time most of the banks were quite active. These banks made sure no one reached to the pinnacle of the collateral system. One can be junior from everyone else. This situation is fast changing. For the people who wish to play in these times should take some lessons from the past.

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