M&A deals slowdown by 50% in July-Sept quarter: Venture Intelligence


Posted October 3, 2016 by MnACritique

The merger and acquisition which had seen a fast rise in last one year seem to have hit a bump as both private equity as well as venture capital investments in India declined by 50%
 
MUMBAI: The merger and acquisition which had seen a fast rise in last one year seem to have hit a bump as both private equity as well as venture capital investments in India declined by 50% in value terms in July-September quarter, according to Venture Intelligence.

“Private Equity firms invested about $3.2 Billion across 125 deals during the quarter ended September 2016. The investment amount was 50% lower than the all-time high registered in Q3’15 (which witnessed $6.5 Billion across 224 transactions) and 5% lower than the immediate previous quarter ($3.4 Billion across 135 transactions),” the report stated.

According to the report, the latest figures take the PE investments in the first 9 months of 2016 to $10.6 Billion across 443 transactions – down 23% compared to $13.8 Billion across 594 deals in the same period in 2015.

Venture capital investments too slowed down by about 50%. According to the Venture Intelligence analysis, VC firms made 76 investments worth $392 million in Indian companies between July and September this year. The investment activity in Q3’16 is 50% lower compared to the same period in 2015 (which witnessed 153 investments worth $657 million), according to the report. The activity level was also 22% lower compared to the immediate previous quarter (which witnessed 98 deals worth $292 million), the report added.

“The latest data takes the VC investments in nine months of 2016 to 290 deals (worth $1 Billion) down 24% compared to 381 deals (worth $1.5 Billion) in the same period 2015,” the research said.
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Issued By M&A Critique
Website M&A Magazine | M&A trends | M&A news | Analysis
Country India
Categories Business , Industry
Tags acquisition , m adeals , merger , venture intelligence
Last Updated October 3, 2016