The Boston Consulting Group (BCG) expects merger & acquisition opportunities for Indian companies after the ongoing global financial crisis settles down in future.
?Currently the India Inc should know two things. They should know how to manage themselves in next six months and how to avail M&A opportunities after 18 months,” said. James Abraham, partner & director, BCG. He said M&A opportunities would be available in cement, IT and engineering segment.
Janmejaya Sinha, managing director, BCG, said that more interventions including liquidity support are required from the policy makers to tackle situation emerging out of the impacts of the global financial crisis. Speaking about the fast deteriorating US financial situation which would impact rest of the world Daniel Steler, managing director, corporate development practice, BCG said that the defaults in US is going beyond housing segment to credit cards and other segments. As of October 20, the total losses for the year at banks and insurance companies have risen to $661 billion in the global level, about $408 billion in the Americas, $228 billion in Europe, and $25 billion in Asia, he said. Another area of concern is the continuing de-leveraging pressure in hedge funds
As investors can only withdraw at specific dates-normally once a year in autumn-hedge funds are trying hard to convince them to remain invested, Stelter added. Given the recent disappointing performance of these funds (-16 % on average since the beginning of the year) and liquidity needs of investors-around $ 43 billion in redemptions in September alone-many experts expect a wave of paybacks and even fund closure which will add to the pressure across all asset markets.
