Few drivers for Indian companies to acquire companies in US –
1. Easy access to world’s largest market and customer base through marketing and distribution channels of acquired company.
2. Easy access to ECB’s is allowing Indian companies with sufficient liquidity to do global acquisitions. In addition with rupee getting stronger against dollar, Indian companies are required to spend less to acquire US companies.
3. Many Indian companies are seeking to expand their distinctive capabilities by acquiring specific skills, knowledge and technology abroad that are either unavailable or are of inadequate quality at home. Indian companies are able to indentify foreign firms with value add offerings, which complement their own low cost products and services to create an efficient and integrated global business model.
4. Regulatory changes in India have made it easier for Indian companies to become more global in their operations. As Forex reserves have increased, RBI has progressively relaxed the controls on outbound investments making it easier for Indian companies to acquire /invest abroad.
5. As Indian promoters are very good entrepreneurs, they are keen on tapping foreign markets t take their business to a global level.
1. Easy access to world’s largest market and customer base through marketing and distribution channels of acquired company.
2. Easy access to ECB’s is allowing Indian companies with sufficient liquidity to do global acquisitions. In addition with rupee getting stronger against dollar, Indian companies are required to spend less to acquire US companies.
3. Many Indian companies are seeking to expand their distinctive capabilities by acquiring specific skills, knowledge and technology abroad that are either unavailable or are of inadequate quality at home. Indian companies are able to indentify foreign firms with value add offerings, which complement their own low cost products and services to create an efficient and integrated global business...