THE WHOLE DEAL
AND NOTHING BUT THE DEAL
This month we had the pleasure in speaking to Piers Linney, the successful entre- preneur and business professional. He told gave us tips on how to run a success- ful company and ways in which to thrive during tough times such as the recession.
He was an inspiring person to speak to, see his interview on page 8.
Over the past few weeks we have been investigating the UK’s Financial Services Authority (FSA) and its effects on the financial sector in the UK. Many lawyers told us that they believe the FSA is coming down too hard with its regulation and this is having a negative impact on the industry. What do you think? See page 16.
January was an exciting time for ACQ Magazine as we had the ACQ Country Awards ceremony for those living in the UK on the 18th at Balls Brothers in London. It was attended by a number of people who were thrilled to pick up their trophies and get recognition for all their hard work throughout 2010.
Finally, we have been speaking to a number of people this month who believe 2011 will bring great things for those in the industry. More deals are on the cards and in particular hotspots such as China, Brazil and India, deals are being done at an increasingly growing rate. It will be interesting to see what the next 12 months will bring, especially for those working in M&A.
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.
Until next month, stay deal happy!
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In this issue
4 For your information
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39Our 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 January 2011
Rajani Associates Reena Grover Partner
Corporate and Commercial (Merger and Acquisition) T: (022) 40961000
F: (022) 40961010
Redclays Capital Srini Chakwal Managing Director
Redclays Capital Pvt Ltd Level 15,Concorde Towers, ‘UB City’, Vittal Mallya Road, Bangalore 560001, India. T: +91-80-40300477
F: +91-80-40300400 E: email@example.com W: www.redclays.com
Investing in India
India is a hotbed of activity. While other countries suffered three experts in the region about what they expect this year
Rajani Associates is an Indian law firm established in November 1999. It has been involved in domestic and international practice in nearly all fields of corpo- rate law as well as commercial litigation and property laws. ACQ Magazine spoke to Reena Grover, a Partner at the firm.
Why is India doing so well when other markets are failing?
In our view there are quite a few reasons for India doing better than other markets. Not only does India has a ro- bust domestic market and with foreign direct investment opening up only a decade back, the Indian market was relatively closed market than others and therefore the In- dian market was not much affected by global factors as othermarketshavebeen.Thestrengthofthebankingsys- tem and management of banks by Reserve Bank of India was another aspect in controlling the cascading effect of markets abroad along with consistent growth in the gross domestic product of the country and opening of foreign direct investment helped a lot.
What makes it such a promising place to invest?
Various reasons can be attributed for making India a promising place to invest. First and foremost is the do- mestic demand for various infrastructure facilities, power, mineral-based industries, banks and financial institutions, which fuels the economy and makes it promising for the investors.SecondlyIndiaoffersdiverseinvestmentoppor- tunities i.e. offering investors exposure to a wide range of opportunitiesfromtheserviceindustry,inparticularinfor- mation technologies, consumer goods and pharmaceu- ticals to infrastructure, energy and agriculture. With the opening of foreign direct investment policies, various sec- tors such as information technologies, pharmaceuticals, manufacturing industries, power and infrastructure have seen a rise in investments. Other factors such as having a well regulated financial sector, growing GDP, having the lowestmedianageamongstmajoreconomiesalongwith additional job opportunities, additional capital to aug- ment rising domestic savings only adds to the comfort of the investor to invest in India.
What sectors in India are performing the best?
Sectors which are performing well are the infrastructure, retail, telecommunications, automotives, IT, pharmaceuti- cals & healthcare, biotechnology, tourism and hospitality, banking/ financial services/insurance and energy.
Why do you think cross-border activity has been on the rise?
Other than the various factors discussed above, the
availability of domestic demand fuelled with liberalised regulatory policies has opened up cross border activities. The foreign direct investment and the overseas policies have been liberalised and simplified to meet the chang- ing needs of a growing economy and has expanded significantly especially after the introduction of Foreign Exchange Management Act (FEMA) in June 2000 and is still evolving. Foreign investors can now inject their funds though the automatic route in the Indian economy under various sectors. Similarly, various clear rules and benefits have been extended for overseas investments as well.
Srini Chakwal is the Managing Director of Redclays Capital Pvt Ltd, a private equity venture capital firm based in India. Redclays Capital is a well diversified equity group with extensive experience in identify- ing, investing, backing and supporting businesses with a high growth potential. The group provides a wide array of private equity functions.
Why is India performing so well throughout the recession?
India continues to be the favoured as the investment destination in the emerging market owing to the rich opportunities it offers and high growth potential. India’s economy is resilient and in a unique sense it is driven by domestic demand. To a greater extent the domestic de- mand has protected the Indian market from the global financial crisis. The continuing high demand for its do- mestic market and a forecast for future growth of about 8% a year means the country has the potential to remain an extremely attractive destination for foreign investors.
Why is India a good place to invest?
The fact that the Indian market operates with a consider- ableleveloffreedomwithoutpoliticalinterferencemeans the country is a good place to invest. India is more promis- ing in huge growth opportunities in the power, infrastruc- ture sectors and its various derivative industries. The rise in the Indian middle class has also fuelled a continuous boominthefastmovingconsumergoods,auto,retailsec- tor and demand in healthcare. IT and telecoms demand will also remain strong. Already this saw a strong inflow of capital in 2010. With robust public markets, it also offers the foreign investor reliable and easy exit strategies.
What do you think the future will bring for the country?
Crisil, the Indian division of Standard & Poor’s, expects Asia’s third-largest economy to grow 8.3% in 2011. In- dia is expected to make progress in various verticals, growth rates in these sectors are expected to increase
ACQ January 2011