Our key findings from the study are:
•Private Equity firms are gaining more confidence in India, primarily driven by high economic growth and a potential to add value to businesses in various phases of their life cycle.
•Financial, IT and Industrial were the top sectors to attract PE investment between 2005 and 2010; however healthcare has gained momentum in 2010.
•Deals below $10 Mn have dominated Indian market over the years. The deal size has started picking up again in 2010.
•Open market has become a preferred exit route over last two years while the share of M & A in total number of exits has gone down.
•Private Equity firms bring a number of advantages to investee companies, however, they need to be looked at in light of existing shareholders’ goals and management style.
•Companies need to answer questions ranging from their goals to cultural fit and right time to exit route before going for Private Equity.