Despite a slowdown in global credit market and possibilities of some deals struck earlier getting restructured, investment bankers are of the opinion that there is adequate liquidity to fund well-priced deals. It is time for Indian companies to come out and scout for opportunities abroad, bankers said.
"Merger and acquisitions (M&As) are likely to continue. However, pricing would be very different from what we had seen in the last couple of years," Tarun Kataria, head of investment banking and markets at HSBC India said. Indian companies have been involved in 172 M&A deals, amounting to $42.48 billion in the first quarter of 2007.
"A number of companies are look at buyouts," Nalin Naayyar, managing director, Lehman Brothers, said. The liquidity position in Asia is much better and firms would chase what might be somewhat cheaper assets abroad, he added.
However, globally, there is a backlog of $300 billion loan waiting to be syndicated, Naayyar said.
Indian companies are also better positioned as most of the transactions are cash transactions and very little of leveraged buyouts. According to a study by the Boston Consulting Group, cash transactions deliver better.