At the intersection of technology, finance and the Pacific Rim.

Wednesday, February 07, 2007

M&A and India

A major theme of the investment banking course is centered on the changing world and its impact on the deal world. In my view, the next twenty years (a very long runway around which to build your career, if you choose) will be about the rise of India and China. I am often reminded that when Charles Darwin coined the term "survival of the fittest" he meant not survival of the strongest, but rather survival by those who can best fit with the environment. In this particular case, those who can fit with the rise of China and India will do well, and those who do not (and are globally minded) better start looking for another place to "fit".

There is this interesting article on the rise of acquisitions and investments globally by Indian companies in the NY Times. Investments by Indian companies overseas have risen to $31 bn.

We will discuss in class the following:

- What do you think is leading to this surge in investment activity? What are the catalysts to overseas investments?

- Do you think the comparison to Japan and the overall poor returns in their M&A globally is relevant to the future Indian experience?