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M&A in 2009: Gazing Into The Crystal Ball Avendus Capital February 13, 2008
PE/Buyout Funds Have Played An Active Role In The Strategic Growth Of Indian IT/BPO Industry IT/BPO Continues To Remain Fa...
Year 2008, Though Challenging Saw Growth In M&A/PE Activity In Terms Of Value From Last Year Comparison By Deal Type (By V...
Valuations In Technology Sector Are At Historical Lows Which Could Potentially Slowdown M&A / PE Activity In Year 2009 Wit...
Current Environment Is Also Expected To Have A Bearing On M&A   Strategies For Mid & Large IT/BPO Companies Focus On Non-L...
IL& FS Financial Center  B Quadrant, 5 th  Floor, Bandra Kurla Complex Bandra East, Mumbai 400051 Landline:  +91 – 22 – 66...
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Ranu Vohra, Managing Director and CEO, Avendus

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NASSCOM: India leadership Forum 2009,Day3, Session 15A: M&A in 2009: Gazing into the crystal ball, Ranu Vohra, Managing Director and CEO, Avendus

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  • Transcript of "Ranu Vohra, Managing Director and CEO, Avendus"

    1. 1. M&A in 2009: Gazing Into The Crystal Ball Avendus Capital February 13, 2008
    2. 2. PE/Buyout Funds Have Played An Active Role In The Strategic Growth Of Indian IT/BPO Industry IT/BPO Continues To Remain Favorite Sector For PE Investments Crucial Access To Capital For Expansion & Growth Key Value Add By PE Investor Improved Customer Confidence Positive Impact On Company’s Brand Due To Strong Pedigree Of The Fund Business Development By Leveraging Fund’s Sector Expertise & Networks Long-term Stewardship Of The Company Enhanced Corporate Governance Plans Notable Buyout Transactions In The Past Number of Deals PE Investments In India Across Key Sectors Source: Venture Intelligence * Closing in progress + + + + + + Year Company PE/Buyout Fund 2008 CMS* Blackstone* 2008 cBaySystems Lehman & S.A.C. Private Capital 2007 Intelenet Global Blackstone 2005 Genpact General Atlantic, Oak Hill Capital 2002 WNS Warburg Pincus
    3. 3. Year 2008, Though Challenging Saw Growth In M&A/PE Activity In Terms Of Value From Last Year Comparison By Deal Type (By Value ) Comparison By Deal Type (By Volume) Comparison By Geography (Cross Border M&A) +18% - 23% Source: Venture Intelligence, Merger Market $3,640 MM $4,279 MM 207 159
    4. 4. Valuations In Technology Sector Are At Historical Lows Which Could Potentially Slowdown M&A / PE Activity In Year 2009 With An Overall Weak Macro Environment, It Is No Surprise That Key Indicators For Indian IT Companies Are Also Pointing To A Shakeout And Slowdown In Near And Medium Term Source: BSE Website Valuations For Indian IT Companies Are At The Lowest Levels Seen In Last 7 Years TTM P/E Multiple: BSE IT Index Increasing Pressure on Billing Rates Weak Revenue Growth Pressure on EBITDA Margins Pressure on PAT Margins Offshore Advantage Reducing Investments
    5. 5. Current Environment Is Also Expected To Have A Bearing On M&A   Strategies For Mid & Large IT/BPO Companies Focus On Non-Linear Growth Tap The High Growth Domestic Market Serious Focus On Geographical De-risking Focus On Vertical De-risking Consolidate To Increase Size, Scale, Service Offerings, Client Base And Leverage SG&A Synergies Expected M&A Strategies + + + + +
    6. 6. IL& FS Financial Center B Quadrant, 5 th Floor, Bandra Kurla Complex Bandra East, Mumbai 400051 Landline: +91 – 22 – 6648 0050 Fax: +91 – 22 – 6648 0040 The Millenia Tower A, 10th Floor No 1 & 2 Murphy Road, Ulsoor Bangalore 560008 Landline: +91 – 80 – 6648 3600 Fax: +91 – 80 – 6648 3636 Website: www.avendus.com Contact Details Avendus Capital Ranu Vohra Email: ranu.vohra@avendus.com Cell: + 91 – 98200 97727 Landline: + 91 - 22 – 6648 0000
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