Deal street dilemma: M&A numbers hit record high in 2017 but value down 12%

Domestic deals continued to dominate overall M&As, accounting for 67% of the total, as home-grown companies preferred the inorganic route for growth

The year 2017 proved one of contradictions for Indian companies’ merger and acquisition (M&A) activities: Even as the number of M&A deals increased 14 per cent from a year earlier to the highest since 2010, the overall value declined 12 per cent to $46.8 billion from $53.2 billion in 2016.

According to consultancy firm EY’s latest ‘Transactions Annual’ report, the number of deals during the year stood at 1,022, compared with 895 the previous year. Market expansion and entry into new markets, digital disruption and sector convergence were seen as the primary drivers.

Domestic deals continued to dominate overall M&As,