India emerged as global M&A hotspot in 2022: Bain & Company report

India bucked the global trend with strategic merger and acquisition (M&A) deal volume and value reaching all-time highs in 2022, a report showed on Tuesday.

Record levels of cash and availability of assets helped deliver a boom with deal volume up 36 per cent and deal value up 139 per cent in 2022, according to Bain & Company's annual report.

"We have seen four straight years of growing deal volume and value, with 2022 setting another record year. This is in stark contrast to the mood and momentum in the rest of the world," said Karan Singh, managing partner, Bain and Company India.

The strong M&A activity was seen across sectors, including financial services, utilities, manufacturing, and healthcare.

Environmental, social, and governance (ESG) is a new theme and India is emerging as a hotspot for renewable energy, Singh added.

Consumer tech has seen the highest start-up consolidation, followed by edtech and fintech.

"M&A activity is strong across the board, from conglomerates acquiring new value creation engines, to insurgents buying into new segments and acquiring new capabilities," said Vikram Chandrashekhar, partner, Bain & Company.

Additionally, India is becoming a prime alternative for global companies that are eager to diversify their supply chains.

"Close to 65 per cent of executives we surveyed have said they expect M&A activity to stay strong in 2023, this is significantly higher than the global average of 37 per cent," said Chandrashekhar.

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