While the recent economic turmoil in the US appears to have slowed down the overall pace of US-bound acquisitions, it has also created significant buying opportunities for well-capitalized Indian companies. Compared to only one transaction of over $1 billion in value for 2007, there were three such transactions in the first six months of 2008 alone.

In 2007, Indian companies accounted for a total of 83 US-bound acquisitions with IT/ITES remaining the most acquisitive industry in India. Deal sizes of less than $25 million accounted for 76 % of the 2007 US-bound acquisitions volume reflecting the increasing pressure to gain scale amongst smaller companies.

India continues to offer great investment opportunities not only in the knowledge sectors, but also in more traditional sectors such as manufacturing, banking, pharmaceuticals and telecom which are likely to attract significant amounts of investment. Deal Structuring parameters in India are driven by factors such as exit, valuations, currency risks, tax consideration and government regulation.