THE WHOLE DEAL
AND NOTHING BUT THE DEAL
This month I was delighted to talk to Julie Meyer – entrepreneur guru and online Dragon’s Den judge. She was amazing, laid back and smooth-talking yet knew so much about the industry that she was an inspiration to chat to. Certainly not the scary dragon I was expecting. There was one point she certainly honed across during the interview – she’s passionate about business and helping entrepreneurs
to achieve their dreams.
I also had the chance to speak to experts about the Dodd-Frank Act that has recently been introduced in America. Many have voiced concerns over what impli- cations the Act could bring and talking to four knowledgeable people, I discovered there are both benefits and disadvantages to the Act.
This month we also took the chance to look back on 2010 and what a year it has been! Although M&A was up on last year, there is still uncertainty as to what 2011 will bring. I spoke to three knowledgeable people in the field to find out more.
In other news, a big congratulations to the ACQ Country Award winners who are being announced this month. There was some outstanding talent recognised across the board.
Finally, don’t forget to check out www.acqmagazine.com for daily updates on the latest news in the M&A world. You can also use our Facebook and Twitter pages to keep up-to-date.
Have a very Merry Christmas and I’ll see you all in the New Year!
In this issue
4 For your information
27Private Equity in India
35Our monthly line-up of the latest corporate finance transactions across the UK, Europe and Worldwide
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The interviews in this publication may contain certain forward-looking statements with respect to the financial condition, results of operations of the businesses profiled. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements may have been made with reference to forecast price
changes, economic conditions and the current regulatory environment. Nothing in these announcements should be construed as a profit forecast.
ACQ Nov / Dec 2010
PE in India / Developing Countries
India enticing investors
India has seen its private equity (PE) sector flourish. ACQ Magazine investigated the reasons behind the rise.
Srini Chakwal is the Managing Director of Redclays Capital, a well diversified equity group with exten- sive experience in identifying, investing, backing and supporting businesses with a high growth po- tential.
A recent survey ranked India as second most attrac- tive destination in emerging market, There has been a strong participation of foreign investors in the India growth story both in the form of direct investment into the sectors as well participation in the Private Equity markets; India was able to attract a compara- tively higher foreign fund flow even during the recent financial crisis.
India continues to be the favoured as the investment destination in the emerging market due to its high growth potential and future of the Indian market is bright and can sustain for more time.
As the economy grows there are huge Private Equity opportunities in the infrastructure ventures the most popular investments targets. Huge growth potential exists in infrastructure related industries. The rise of the Indian middle class has also created a continuous boom in the consumer goods, auto and retail sector. Interest in IT and telecom will also remain strong.
Will this upward trend in private equity continue?
The Indian economy has grown by leaps and bounds in the last five years with the average GDP growth at 8.5%, There are signs that the increase in PE activity in India over the last two quarters will continue its up- ward trends.
Robust GDP growth forecast and increasing confi- dence should lead to higher investments and higher deal activity. On the demand side, a number of funds, including the global PE houses, are sitting on signifi- cant capital and are increasingly looking at invest- ment opportunities in emerging markets, particularly India and China.
Srini Chakwal Managing Director Redclays Capital Pvt Ltd
Level 15,Concorde Towers, ‘UB City’, Vittal Mallya Road, Bangalore 560001, India.
F: +91-80-40300400 E: firstname.lastname@example.org W: www.redclays.com
Developing their way to the top
Developing countries have seen an explosion in M&A recently. ACQ Magazine investigated why, speaking to legal expert Shpati Hoxha.
Shpati Hoxha is Partner and one of the Founders of Hoxha, Memi & Hoxha (HM&H). He specialises in commercial & corporate law, antitrust & trade, IP & IT law concessions and energy law. HM&H is an Al- banian independent firm focused on business law.
Why do you think firms in developing countries which are involved in M&A have seen a sharp rise recently?
I believe that under certain conditions, in times of international financial crisis of main western econo- mies, international companies may look towards de- veloping markets. Developing economies may poten- tially have lower labor costs and higher profit margins.
Therefore, in ideal conditions, international com- panies may aim to continue to invest (albeit in lower amounts) in developing countries and maintain more or less the same profit margin. As the business star- tup in developing economies can be quite stressful, I believe international companies tend to prefer the acquisition of established local companies instead of establishing new businesses in these economies.
What impact will this have on the sector?
As a consequence of the above, law firms involved in M&A may receive additional new engagements. How- ever, I believe there will be competitiveness in each developing economy, rather than profiting from short term global situations, which will provide a steady growth for the sector.
What are your predictions for the sector?
I believe the sector will continue to see rises but we should be more realistic for the future and not expect it to maintain the same rhythm.
Why do you think developing countries are per- forming better than developed countries?
I believe the first miles are always the easiest and de- veloping economies may be more efficient and pro- vide higher growth rates. However, in the long run, I believe developing economics may not keep the pace with consolidated economics.
Shpati Hoxha Partner
Hoxha, Memi & Hoxha P.O. BOX no. 48
Rr. Nikolla Tupe no. 5 first floor, Tirana, Albania T: +355 4 2 274558
F: +355 4 2 244047
E: email@example.com W: www.hmh.al
ACQ Nov / Dec 2010