Success is 99% Inspiration and 1% Perspiration

Newsletter Issue 51
Jul 2017

As someone rightly said, success is 99% inspiration and 1% perspiration. Successful businesses all over the world are driven by leaders who inspire and products and services that lead to inspired living. When businesses strive to inspire, and not just make their ends meet, it is then that they set an example for the rest of the world to follow.

Indian Automobile Industry: An Inspiration to the World

Did you know? The first time that the Indian roads witnessed a vehicle was only in 1897.

In fact, you will be amazed to know about the humble beginnings of the Indian automobile industry. For starters, there was no manufacturing facility for cars till 1930. Vehicles had to be imported from other countries. A decade or so later, Indian companies like Hindustan Motors and Premier started manufacturing cars, but not for their own firms. They supplied contractually to firms from other countries.

The aftermath of independence in 1947 was a scramble of efforts and struggles of the government at that time to put together the skeleton for an independent automobile industry that could manufacture and supply cars on its own. The restrictions set on imports slowed down the industry to a great extent between 50s and 60s.The classic Ambassador model by Hindustan Motors had a monopoly in the market between 60s and 80s, coupled with a slight rise in demand for commercial utility vehicles. Overall, the Indian automobile industry was still largely struggling even at this time.

A new entrant in the 1980s transformed the automobile landscape in India forever. Maruti Udyog Limited entered the market in its full glory and challenged the existing players Hindustan Motors and Premier full on. The truth is, Maruti’s eagerness to serve an underserved market and sharpen its business model to fit the Indian context became a tremendous inspiration for automobile enthusiasts, policy-makers and general consumers alike.

The liberalization of Indian economy in 1991 was a tremendous boost for its automobile sector, just like it was for many other industries as well. The automobile industry was now opened up to foreign car manufacturers, automotive investors, and technology players, to invest, outsource and base operations in India.  In fact, the first joint venture of an Indian company with a foreign one first happened in the automobile sector – the joint venture between Maruti and Suzuki!

Gradually, major global automobile players such as Hyundai and Honda started making inroads in India. Soon, more and more global giants secured foothold in different parts of the country by setting up manufacturing base for parts and auto-components, assembling units and so on.

Today, India is a major automobile destination of the world. The industry is one of the largest in the world and contributes to more than 7% of India’s GDP, while making up nearly 22% of the country’s manufacturing GDP.

India had a total production of 23.96 mn vehicles in April-March 2015, with a growth rate of 2.58% over the same period last year. We are currently the 6th largest automobile market in the world, and are all set to become the world’s third-largest car market by 2020. When it comes to automotive, we are also one of the most competitive across the globe. While we do not have 100% of technology or components required to manufacture a car on our own, we are nearly there at 97 per cent.

The transformation of Indian automobile industry over a period of little more than a century has been an amazing journey and an inspiration to the rest of the world, especially the other developing third world economies. The automotive aftermarket in India is largely dominated by Small and Medium Enterprises (SMEs) who have also grown by leaps and bounds in count and in technology during the last few decades. It is one of the fastest growing segments in the automobile sector, and holds great potential for India’s economy and transport solutions.

It has been an exciting roller-coaster ride so far for one of India’s booming industries, and the road ahead seems to be getting more exciting with the global race for cost-leadership and launching environment-friendly vehicles such as electric cars. It is now to be seen how we fare in the new age automobile adventure and draw inspiration from our eventful history.

References:

http://www.motorindiaonline.in/aftermarket/indian-auto-aftermarket-challenges-ahead-opportunities-inherent/

http://businessworld.in/article/Make-In-India-Automobiles/20-03-2017-114749/

https://en.wikipedia.org/wiki/Automotive_industry_in_India

https://www.ibef.org/industry/india-automobiles.aspx

https://www.cartrade.com/car-bike-news/a-brief-history-of-the-indian-automobile-industry-122518.html

Event – VCCircle

VCCircle Events

Team Member Message – Jinansh

Inspiration is all around you, all you need to do is find it as it helps us overcome our own limitations. In my journey with Indiabizforsale my team’s creativity, innovation and growth has constantly inspired me to do more and overcome my limitations.

Analysis: The Key Tool for Business!

Newsletter Issue 50
Jun 2017

Analysis is a key tool for businesses. It shows the business the present reality and enables it to decide on the course ahead. Analysis of a business, industry or the overall economy, brings out its strengths and weaknesses, and also the opportunities and threats. Analysis also helps businesses understand the trends and shifts in consumer behaviour and preferences. In short, analysis helps businesses see a holistic picture of the present and the future.

Industry Analysis: The key Importance of Industry Analysis for Competitive Edge in Services Sector

With an estimated growth of 8.8 per cent in 2016-17, Services Sector in India is an important net foreign exchange earner and the most attractive sector for FDI (Foreign Direct Investment) inflows. Services Sector is also the largest contributor to India’s GDP, constituting more than 50% of the total GDP by value.

Services are extremely diverse, not only in India, but all over the world. Broadly, services can be categorized as 1) consumer services and 2) business services. For example, a salon that provides grooming and make-over services to individuals is a consumer service provider, whereas a software development company serves institutional clients, and is a business service provider. However, many service providers serve both consumers and institutions, for example telecom services, banking and other financial services, and lawyers etc.

Why is Analysis Important in Services?

Because of the manner in which services are delivered and consumed, most service industries tend to be extremely competitive. Service providers, especially in the organized segment, have long realized the significance of continuous, real-time analysis of legitimate market intelligence as the mainstay of survival. At the core of this premise, there are three important factors to be accounted for:

  1. Services are performed, and not produced. This makes the service experience extremely dependent on people, making it hard to standardize.
  2. Customer loyalty is extremely crucial to attain competitive leadership for a service provider. A large base of loyal customers can act as a significant entry barrier for competitors.
  3. Service cannot be returned. So, each time a customer consumes a service, there is a risk of service-failure involved.

This means that services, unlike pure-play products, need to constantly evolve and be in sync with the pulse of customers and their service experiences.

Analysis and Competitive Edge in Services

The application of analysis by service providers is probably more apparent in the organized sectors than in the unorganized ones. Let us look at a few prominent examples of service providers securing competitive advantage through analysis:

Telecom Industry: It is one of the most competitive industries in India, and is amongst the most regulated ones. Recently, a leading telecom operator launched a hi-speed 4G service, coupling the launch with a 3-month free-trial that was later extended to 6 months. Irrespective of whether this model succeeds in the long-run or not, this is a case of business advantage gained from Indian consumers’ trends analysis, that suggested that consumers today are looking for cheaper, faster data more than ever.

Insurance Industry: India’s insurable headcount is estimated to be 750 mn in 2020, and yet its insurance penetration still lies considerably below the global average. High customer acquisition costs, low customer retention, and severe competition among players has made analysis indispensable for insurance players. By partnering with foreign providers, Indian insurance providers have stepped-up their game using deep analytics tools such as machine learning, natural language processing, cloud computing, big data and even geospatial analytics (in the case of crop insurance, for example).

Banking Industry: Until recently, traditional banking services in India were struggling to survive the blow from e-wallets, payment gateways and other FinTech innovations. Conventional banking is now being recast to function seamlessly through customers’ mobiles as an on-the-go service. Actionable analysis of consumer behaviour and service usage pattern plays a pivotal role in that direction. In this case, it is not just consumer intelligence but also competition intelligence that has been instrumental in helping banks reinvent their solutions.

Entertainment and Media Industry: Any form of media – print, audio, audio-visual or live – depends heavily on tracking consumer tastes and preferences to remain relevant. A very recent example of how entertainment in India evolved in tune with consumer preferences is that of introduction of mobile entertainment streaming channels. With a simple downloadable app, these channels provide highly tailored and/or popular content at minimum possible data consumption rate and fast streaming, and have already seen huge acceptance from urban masses.

Are you associated with a service industry? Have you experienced the need for analysis in your business? What are the tools and approaches that you have used? Please share your experiences with us on [email protected]

References:

  1. https://www.ibef.org/industry/services.aspx
  2. https://www.ibef.org/industry/insurance-sector-india.aspx
  3. http://timesofindia.indiatimes.com/business/india-business/Insurance-penetration-in-India-at-3-9-percent-below-world-
  4. https://www.ibef.org/industry/banking-india.aspx
  5. http://www.pwc.in/press-releases/india-third-largest-domestic-banking-sector-by-2050.html
  6. http://pib.nic.in/newsite/printrelease.aspx?relid=154627

Event – Business Buyer’s Club – A novel beginning by Indiabizforsale.com

IndiaBizForSale was started in 2013 with the core mission of helping small and medium business owners sell their businesses instead of shutting it down. Back then, we were completely business owner centric – i.e. only sell-side listings existed on our platform.

However, with continuous analysis of data and trends, our mission and vision has evolved over a period of time. Firstly, we realized that our platform can also help businesses looking for investment, partnership etc. and so we widened our listing opportunities to include those growth options as well. The bigger revelation happened when our analysis brought to light the sheer power of buyers and investors. The number of registered buyers on our platform was 2-3 times more than that of the sellers! We were constantly receiving inquiries from them and soon we realized that we would need to focus on buy-side listings as well and showcase their requirements.

In this way, from a seller-centric platform we became a business matchmaking platform.

Even as we speak, we are reaping the benefits of putting analysis into action by evolving into a matchmaking platform. The matchmaking approach has shown its wonders with a considerable number of matches already being made – and what’s more – from among these matches, we have a closed a number of deals as well.

More recently, our analysis has indicated the need for providing advisory support to both buyers and sellers. This has sparked our transition towards becoming an end-to-end deal-making platform.

We hosted the opening edition of Business Buyer’s Club in Mumbai last week as our first attempt towards fast-tracking deal discovery with credible prospects. In this event, handpicked businesses were showcased to a cohort of genuine buyers and investors from Mumbai. This was followed by a networking lunch that facilitated personal interaction between buyers, investors and business owners.

Even as we evolve and transform through insightful analysis, our larger goals remain the same – we are here to make SME deal-making hassle-free, quick, and exciting!

Team Member Message – Dhanaji

Data and its analysis has a very important role in the development of our organization. Our data analysis process considers industry trends, client’s requirements, interests etc. Analysing the data helps us in giving better services to our users as well as to achieve company’s goals efficiently.

Competition – The Lifeline of Businesses and Markets

Newsletter Issue 49
May 2017

Competition is often seen as a negative force on a business. In reality, it is an extremely critical force in the market which helps businesses attain their best potential and constantly upgrade themselves to retain their competitive edge. Competition also brings substantial benefits to the consumer by offering a wide range of choices at competitive prices, innovation, opportunity to explore new offerings, avoid the ill-effects of market monopoly, and superior negotiating power.

In the long-run it works as an auto-corrective force in the market that weeds out the inefficient players and helps the performers thrive. Competition is not always a threat – sometimes it is also an opportunity to learn from other’s mistakes and even join hands to collaborate and co-create. In the end, the outlook of a business towards its competition is what matters.

Can Make-in-India Make Our SME Manufacturing Sector Globally Competitive?

SMEs in India constitute a whopping 90% of the total industrial units, manufacturing over 8,000 products that serve both domestic and international markets. Manufacturing, in fact, is the mainstay of Indian SMEs, with 67% in manufacturing, 17% in services and 16% in repairs and maintenance. The key areas in manufacturing that SMEs focus on: automotive, electronics, engineering and chemicals.

Barriers of Indian Manufacturing Sector in Attaining Global Competitiveness

While a few Indian companies have set an example by outshining multinational giants in the global competitive domain, India is yet to become a world class manufacturing force to reckon with. A large part of the sector is unorganized in the form of SMEs, who take up contract manufacturing both from MNCs and Indian market leaders. Some of the barriers that India faces in attaining global competitiveness in the manufacturing domain are –

Productivity Challenges: Manufacturers are often constrained by low productivity of labour, largely attributable to negligible advances in automation as compared to the rest of the world, coupled with obsolete manufacturing processes, non-scientific design and development of manufacturing units and layouts, and work design inefficiencies.

Poor Supply Chain: Indian manufacturing is characterised by buildup of inventory and high transaction costs leading to significant operating capital being locked up at multiple nodes in the supply chain. This stems from poor infrastructure support, archaic policies and taxation laws, as well as inadequate supply chain management acumen of the manufacturers.

Inadequate Quality Control: Manufacturing is an extremely quality-sensitive sector, that requires competent engineers to set up efficient quality control systems, measurements, and defectives management systems. The fact that this is not given its due importance in the unorganized and semi-organized sectors makes Indian products unacceptable in many export markets.

Make-in-India: Bringing World Class Manufacturing to India

Make-in-India was launched by the Government of India in September, 2014 to promote indigenous manufacturing by encouraging multi-national, as well as national companies to manufacture their products in India. This in turn has been a boost towards transforming Indian manufacturing sector and making it globally competitive in the following ways:

Investments in Asset Productivity: After the initiation of Make-in-India, the country emerged as the top destination globally for Foreign Direct Investment (FDI) in 2015, edging past the US and China. Investment in productivity enhancement systems such as efficient line balancing, just-in-time (JIT) inventory management, lean plant layout, and process de-bottlenecking will be instrumental in catapulting innovative process automation to the next level in Indian manufacturing arena.

Infusion of Global Manufacturing Practices: As more and more MNCs set up their manufacturing base in India, their best practices are bound to make inroads into our processes, systems, quality controls, analytics and workforce performance. The erstwhile ‘closed’ manufacturing sector will now explore and experiment with globally tested approaches and contextualize it to Indian conditions, so as to maximize its export potential.

Supply Chain Boost: With the enthusiastic response that the Government has received, it will be imperative on part of the Government to keep its commitment in stepping up the infrastructure and overall supply chain in order to enable success for Make-in-India. Government is also alleviating supply chain challenges indirectly by supporting innovative startups who bring creative, market-driven, technology solutions to manufacturers.

Automatic Checks and Balances: India as a global destination for manufacturing will automatically bring in quality standards and control measures that will initiate a corrective mechanism in the otherwise unorganized and fragmented sector. With unification of quality specifications, cost control and process efficiencies, India will soon stride towards manufacturing excellence.

India’s manufacturing sector has received the much-needed boost from initiatives like Make-in-India, and all businesses including SMEs are benefiting from it. At IndiaBizForSale.com, we help thousands of business including those in manufacturing sector to grow their ventures to new heights.

References:

https://www.atkearney.in/operations/ideas-insights/featured-article/-/asset_publisher/3JVeyEehix99/content/make-in-india-how-manufacturing-in-india-can-become-globally-competitive/10192

http://economictimes.indiatimes.com/news/economy/finance/india-replaces-china-as-top-fdi-destination-in-2015-report/articleshow/51932057.cms

https://www.ibef.org/download/SMEs-Role-in-Indian-Manufacturing.pdf

http://indien.ahk.de/fileadmin/ahk_indien/Bilder/2013_Past_Events/IG_SME/presentation/Dipankar_De_D_B.pdf

 

Business Verification – A Competitive Advantage

It is a business’s nature to want a competitive advantage over others in its  industry/sector/location and prove to be a better option.

To provide a similar competitive advantage to the businesses listed on the platform we provide them with free business verification service which works on a very simple principle, provide us your business documents to verify the information mentioned in the business listing. If the information​ checks out we give your business listing a verified tag indicating that the information provided is accurate based on the documents submitted. This in turn builds a greater trust for buyers / investors towards the business opportunity and hence the business receives more enquiries which in turn results into the business deal getting closed faster.

Did we tell you that the documents submitted are kept absolutely confidential? Hence, as a business you get a competitive advantage without giving up any business confidentiality and as a buyer/investor you have a clear picture of the business that you are interested in.

Team Member Message (Sana)

Competition is a part and parcel of life and it helps us grow. It proves as a tool to motivate and encourage us in achieving our set goals. We have achieved many milestones because of our competitive spirit. As an individual, it has helped me to set difficult targets and work towards achieving them. For my team it has aided in both personal and professional growth, which is achieved not just by competing with each other but with ourselves as well.

Credibility: It Makes or Breaks Businesses

Newsletter Issue 48
April 2017

Credibility is the most sought after aspect in the business world today, sometimes even ahead of profitability! Since time immemorial, businesses have faced the trade-off between short-term profiteering and long term profitability that is sustained by trust and good business practices.

Credibility is no short-term pursuit. It takes years, often decades to establish credibility in the market. In the age of social media, it has become easier to communicate a venture’s credibility, but making your business credible in the first place is the biggest hurdle. Once built, it is the largest asset you will ever build and account for. In fact, many SMEs have serviced their niche markets with such dedication and focused so intensely on building trust and relationship, that they are enjoying its fruits in the present day.

The Bitter Pill: Credibility Challenges in Indian Pharmaceutical Sector

It is no secret that pharmaceutical industry is the sunshine sector of Indian exports. Led by the country’s giants such as Cipla, Lupin, Sun Pharma and Cadila, generic drugs constitute the largest pie[1] of Indian pharma’s $20 bn export market, followed by OTC medicines and patented drugs respectively. With over 200[2] pharma companies and thousands of contractual manufacturing units (dominated by SMEs) in the country, the domestic market too was pegged at a whopping $26 bn[2] in 2014.

However, in recent times there has been a slide in the credibility of the industry. In 2015 alone, 12[3] Indian pharma manufacturing sites received import alerts from the US FDA. The latest warning against an Indian pharma site was issued as recently as December, 2016[3]. With the increase in consumer awareness, questions have started to loom in the minds of many on the existing practices and transparency commitments of the players in this space. The government has made attempts to resolve the credibility issues for all the companies in the space. As a part of the attempt standard norms and regulations pertaining to the industry in general have been created and implemented to reduce the discrepancies and gaps especially for small businesses.

There are a few key concerns baffling us Let us explore and see how can these be addressed?.

  1. Tests and Clinical Trials

Perhaps one of the biggest concerns in the pharma space since our independence has been the establishment of transparency in conducting clinical trials for drugs. The entire spectrum of the clinical trial process is under the scanner due to lack of legislative framework making it mandatory to present clinical trial methodology, data, and findings for review if (and when) demanded by concerned authorities. It is not just transparency of information – often, deep pocket pharma giants make it through the tunnel while smaller businesses, no matter how genuine, struggle to meet the costs of such trial, and end up remaining as pure-play suppliers / contract manufacturers.

The situation can be controlled if not completely resolved with the implementation of various regulations and guidelines and creation of a strong legislative framework as well as encouraging companies to patent their formulations.

  1. Price-Discrimination

According to a recent study, drugs form the largest component of expenditure in the total Out Of Pocket (OOP) spend on healthcare[4]. The gaping disparity between prices of branded drugs as against generic drugs with the same formulation have cast dark shadows on the price-discrimination pursued by the industry as a whole. Coupled with this is the fact that many Indians are lured to buy the costlier branded drugs largely by physicians who are often paid large incentives to promote them.

A lot of measures have been taken to curb this issue, starting from creation of website to help people find the generic names for their expensive medicines as well as opening of ‘Jan Aushadhi Stores’ to help them buy those easily and hence overcome the trap created by physicians and larger companies. On the other hand, these companies have also been issued directives on curbing the prices as well as show a good cause for the high-priced drugs.

  1. Good Manufacturing Practices

Almost 50 Indian drug makers received warning letters for violation of good manufacturing practices in 2016[5]. These include violations of site hygiene, worker security, monitoring and evaluation, staff training, preventive and scheduled maintenance, periodic documentation, process standardization and so on.

For an industry that is as sensitive as pharma, attempts to regain the credibility are being made by enforcing good manufacturing practices also termed as GMP. Now it has been made mandatory for all units to have GMP certification. Periodic as well as surprise inspections are also being made to ensure that the same are constantly followed.

Beyond the Pill

Globally, Pharmaceuticals is moving beyond the bill to more engagement-driven delivery through interfaces such as mobile apps, microsites, online forums and peer review among patients. The same is being initiated in India.

With the growth of online pharmacies and the ‘Jan Aushadhi’ initiative by the government we are also making an attempt at creating a stronger community of customers through patient education, information, and interaction. Pharma is also joining hands with medical devices and genomics by creating a more patient-centric healthcare.

At IndiaBizForSale.com, we understand the difficulties faced by small pharma businesses in establishing credibility. We enable credibility-driven growth for SMEs by fuelling strategic partnerships in the domain in several forms.

[1] http://economictimes.indiatimes.com/news/economy/foreign-trade/pharma-exports-up-9-7-per-cent-33-per-cent-growth-in-us-markets-in-fy16/articleshow/52012189.cms 

[2] http://www.business-standard.com/content/b2b-pharma/indian-pharmaceutical-exports-the-growth-story-116010600140_1.html 

[3] http://www.ibtimes.co.in/indian-pharma-companies-improved-credibility-2016-nomura-710080 

[4] http://www.tapanray.in/is-credibility-erosion-of-pharma-accelerating/

[5] http://www.ucnews.in

Our Credibility – Our Strength

It has been a little over 4 years for us at IndiaBizForSale.com, and we already have 17,000+ users (businesses, individuals and professionals) registered on our platform as well as we recently started our first regional office in Mumbai. As we grew from strength to strength, there is one thing we always kept our focus on – Credibility.

Each user and each deal is special for us, and we serve everyone with equal zeal and fervour. Our technology team ensures a smooth and creative user experience in discovering potential matches, while our client support team is always available to address queries and doubts. We do not believe in letting things go in the middle, and so our users can also opt for end-to-end transaction support services where we manage the deal for them. We never spam you, and notify you on matches that are a fit for your requirements. We are much more than our algorithms – faster, quality matches that make sense for your business needs.

At the end of the day, credibility counts and we account for it more than ever, every single day, through our platform, interactions, and services. For example, in order to bring credibility to our business listings, we encourage our users to get their business listings verified, and on verification we highlight the same with VERIFIED tags. This brings confidence among users and separates the verified from the un-verified – just one of the many ways in which we bring credibility into play in our daily work. Another example – any information (other than platform listing) that a user shares with us is kept completely confidential with classified access within our team. We have reduced confusion over valuations by onboarding a valuation expert, who offers his services through our platform to interested users.

Our dream is to make IndiaBizForSale.com a brand to reckon with, one that is built brick by brick with your trust and faith. And we have already received enormous appreciation for our efforts – read our testimonials to know what our clients have to say about us!

Team Message (Divya)

Credibility for me, comes from becoming an expert in your field. Being with IndiaBizForSale for almost a year, I have realised that walking that extra mile every time for clients has helped me in getting more expertise in my niche profile and hence in creating a great rapport with my clients as well as increase my credibility.

SMEs: A Bare Necessity of an Economy

Newsletter Issue 47
March 2017

When we think of businesses or companies anywhere across the globe the first thing that comes to mind are the giants, the multi-nationals and the big conglomerates of businesses that seem to form the majority contribution to an economy. As much as that is true what we do not realize is that it is the SMEs of an economy that create the backbone of it and are the dire necessity of an economy to ensure its existence.

According to a report by world bank the SMEs of any economy contribute about 33% to its GDP and give employment to about 45% of its population. Even if we just focus on these 2 aspects it resonates that the SMEs of an economy although contribute only 1/3rd to its GDP yet are responsible for creating a livelihood for almost half of its population which becomes the driving force of the economy.

Each and every business in the SME sector has an extensive potential to grow and be a part of the bigger leagues yet the lack of proper funds and support from the governments makes it difficult for them to carve their niche. Having said that, in the recent years most governments are realizing their potential and are creating more SME favorable policies and laws.

Necessity of Succession Planning

“The number one role of any leader is to identify and prepare their successor.” – Bill Blisss, Author, Entrepreneur

If you believe that succession planning is only for large businesses, you are not alone.

According to PwC’s 2016 India Family Business Survey Report[1], only 15 per cent of family businesses have a ‘robust, documented and communicated succession plan’. Given that most SMEs in India are family businesses[2], this statistic paints quite a grim picture of succession planning among SMEs.

In simple terms, succession planning refers to organizations identifying potential candidates for filling future vacancies, especially at the top. Once these candidates are identified, they are often trained and prepared for the role, and sometimes are even appraised of the possibility. Whether large or small, succession planning is a must for all organizations. Here’s why:

  • Disasters Don’t Come with a Warning: Even with all the fail-safes in place, a business disaster is often completely unforeseeable. Be it an unexpected illness or personal emergency of the current employee, a natural calamity, or a sudden retirement of an executive, having a successor on your mind ready to jump in when there’s a crisis is not only precautionary, but also proactive. It is a relief to know that irrespective of the personal crises in your life or that of your employees, your company always has a lifeboat to turn to.
  • Benefits of Succession Planning are Ongoing: Succession planning is primarily for the future, but not exclusively so! It is not like an insurance policy designed for contingencies. Instead, it helps the business today by encouraging mentorship, learning, inflow of fresh perspectives and bringing a dimension of comprehensiveness to business decisions. With a robust succession plan in place, a long-term point-of view is automatically built-into the execution of critical business operations.
  • Healthy Competition Makes Your Potential Candidates Realize Their Best Potential: The moment you encourage your team members to perform with the succession plan in mind, they often push themselves voluntarily to give their best. Instead of being employees who follow orders, they start to think like leaders who have to fill the shoes of an exemplary senior someday. This healthy competitive climate brings out the fullest potential of your choicest employees, like never before.
  • Succession Planning Applies to All Levels: While succession planning is usually spoken of in the context of top management, its ideal application is across the entire hierarchy of the company, for all the critical positions. Having a seamless succession plan in place lends voice to your employees, mitigates contingencies in a timely manner and ensures passing down of knowledge and information capital in a streamlined manner. After all, a business rarely functions only from the top, and functional succession plans can bring significant clarity in the running of the entire length and breadth of the organization.
  • Succession Planning is a Good Way to Foster Cross-Learning Among Departments: Gone are the days when departments in an organization operated in silos. Each department follows a learning curve of its own, and the best organizations enable dialogue and engagement among their departments to make the best of their knowledge resources which have been developed over a period of time. Succession plans encourage your team members to develop their skills and experiences in a rounded manner, as they foresee the necessity of all-round professional growth.
  • Succession Planning Improves Longevity of Employees: Today, there is no dearth of opportunities for a quality professional, and often employees look for much more than monetary benefits. It is likely that when an employee gets a hint of his organization having future plans for him, he considers sticking to the organization instead of mindless job-hopping. He begins to consider his current association as more valuable and reliable than before, and starts making business decisions knowing that he is in for the long-haul.

Thus, whether large or small, your business will definitely benefit a lot with a meticulous and realistic succession plan in place. This article has been brought to you by IndiaBizforSale.com – the most preferred platform to buy, sell, fund and grow businesses in India.

[1] http://www.pwc.in/press-releases/2016/only-15-percent-of-indian-family-businesses-have-robust-succession-plan-pwc-report.html

[2] https://yourstory.com/2016/11/demonetisation-impact-indian-sme/

Necessity of Valuation for your Business

As the term ‘Business Valuation’ suggests, it  envisages the value or worth of your business in currency value. The factors influencing business valuation include assets and liabilities, cash-flow, profits and competition benchmarks, among others. It is necessary for a business to get valued not only to know how much the business is worth, but also to understand how desirable the business is given the current market scenario, as well as to compare the health of the business with its competitors  and to understand if the business is towards an upward or downward trajectory.

For all those owning or running a business, the general notion is that you should get your business valued only when you want to sell it. Let us bust your myth – you should always know the approximate value of your business whether you wish to sell it or not. You need not get business valuation done every quarter or year but it is always good to get it done once  in a few years just to know where you were then vs where you are now, as well as to envision where you want to be in future.

Whether you are someone looking for investment for you business or planning to form a joint venture or partnership, or simply planning to sell it off, finding the value of your business helps you formulate your strategy and gives you an edge over others. It also helps you realize what to expect on the negotiation table vs what you are wishing for,  and how to reach your expectations from here.

We at Indiabizforsale.com offer expert services to help you find the current value of your business as well as help you secure an  investment / partnership / sale deal ideal for you, while you focus on  growing your business to the  level you want.

Our in-house CA, Sneha Gohil has a special message for all of you.

Financial Information is the heart of business management which when presented in a structured manner is called Financial Statement and Reporting. It plays a vital role by reflecting overall position and growth of the business, shows how effectively and efficiently business resources are being used and is helpful for its owners and various business stakeholders in decision making process.

Growth: The Most Powerful Motivator

Newsletter Issue 46
February 2017

Growth is one of the most powerful motivator that keeps us going, we as humans have a constant urge and desire to grow and get better; better than what we are and better than others. And it is this urge for constant growth that also gets reflected in all our activities including our businesses. Every business owner / operator runs the business with a single objective of ‘GROWTH’. Although the definition of growth is subjective to an individual; for some this could mean higher revenue, for some it is increased customer engagement and retention, while for others this relates to brand visibility and recognition. All in all, it translates to an increase that is usually measured by increase in profits that the business earns.

 

Growth of Finance Industry in India – From Scare to Share!

India’s growth story is a bit of a twist.

Economic liberalization during the early 90s culminated into a dramatic upsurge in trade and commerce in the couple of decades that followed. And yet, even as markets mushroomed and flourished, India remained oddly true to its status of a severely cash-intensive economy for quite a while. With increased awareness, user-friendly technology, and drives like digitization and demonetization; cash as the key driver of exchange is slowly taking a backseat. Businesses and individuals are gradually placing trust on the banking sector – one of the most prudent and well-regulated in the world, which even stood the test of 2008 global meltdown. Financial service providers are gaining foothold as innovation and inclusiveness kick in, while insurance industry has witnessed unprecedented growth in the recent years.

Banking Upon Bankers

“Bankers know that history is inflationary and that money is the last thing a wise man will hoard.” – Will Durant, American writer and philosopher

The Indian banking system has seen a great upsurge in the fiscal decade of 2006-2016, deposits in banks grew at a CAGR of 11.47%. As of financial year 2016, USD 1.46 trillion in deposits is available with banks. Increase in disposable incomes and ease and confidence in using banking services are some of the major factors in enabling consumer deposit growth. On the other hand, a sharp increase in consumerism and easy access to bank credit have boosted the growth in consumer credit. In Financial Year 2016, the total credit extended peaked at USD 1,016 billion.

Aside from the core activities, banks have diversified their activities and have ventured into consumer finance, wealth management, life and general insurance, investment banking, mutual funds, pension fund regulation and stock broking services. Integration of electronic and cellular technology with banking to ensure a seamless experience has been a spectacular phenomenon in the recent years. To encourage this further, the Reserve Bank of India (RBI) has released In the ‘Vision 2018’ document of RBI; promoting increased use of electronic payments, rise in the adoption of digital channels, and widening the customer base for mobile banking. On other technology fronts, several banks are exploring the option to launch contact-less credit and debit cards.

Leveraging NBFCs

“You can’t fund India’s growth with just bank financing” – Vikram Limaye, CEO Designate, NSE

The contribution of Non-Banking Financial Companies (NBFCs) to the economy has grown enormously from 8.4% in 2006 to more than 14% in 2015. As far as financial assets are concerned, NBFCs have booked an impressive (CAGR) of 19% over the last few years. From the looks of it, NBFCs are all set to reach an AUM of around 6.044 trillion INR by March, 2017. This also comes in the wake of revised regulations and prudential norms for NBFCs to bring them at par with banks over a period of time.

Insuring India

“As an athlete, I understood the value of my health insurance. I knew that in my profession, injuries were common and could happen at any time.” – Magic Johnson, retired professional basketball player

During the Financial Year 2015-16, the life insurance industry clocked a growth rate of 22.5 per cent over the previous year. The general insurance industry, on the other hand, booked a 12 per cent YOY growth in Gross Direct Premium underwritten in April, 2016. India’s life insurance sector is the largest globally, grossing about 360 million policies. Globally, India is also the fifteenth largest insurance market in terms of premium volume. Life insurance penetration in India is only 3.9% of GDP, which is more than doubled from 2000. A high-growth economy, increasing levels of income, and improving life expectancy are factors that favourably influence growth in the sector in the near future.

Market Participation – Stocks and Securities

“Never depend on single income. Make investment to create a second source.” – Warren Buffet

Increased participation in financial and capital markets through investments in stocks and securities have been enabled by myriad recent steps such as introduction of information technology systems in the National Stock Exchange (NSE) in order to serve various investors in different geographical locations, and removal of the forward trading mechanism. With share trading and other investment modes now available online, consumers are able to handle their money from the comfort of their homes.

Innovation and Startup Landscape

“When you innovate, you’ve got to be prepared for everyone telling you you’re nuts.” – Larry Ellisona, American businessman

India’s financial sector has been something of a late bloomer when it comes to Fintech and Financial Services. Take for example, the case of mobile wallet startups who ruled globally and yet struggled to find foothold in India initially. Of course, with the demonetization drive, there has been an opening-up of markets and improved acceptance.

Mobile Wallets – Indian mobile wallet market is projected to reach $4.4 billion in transactions by 2022. Enterprises like Paytm, FreeCharge, Oxigen and others in the industry have collectively grown about 20 times to reach Rs 206 billion in the Financial Year 2016.  

Innovative Financing – Innovative financing such as P2P lending, crowdfunding, interest free EMIs, etc. have also taken the urban markets by storm and are expected to extend its services in the days to come.

Concluding Note

The finance industry constitutes the backbone of an economy, securing its individuals, fuelling its enterprises and promoting foreign participation. It will be interesting to see how the growth phase pans out in the light of recent developments. Stay tuned to our newsletter as we come up with more stories like this!

References:

http://www.ibef.org/industry/banking-india.aspx

http://www.infotechlead.com/ecommerce/indian-bfsi-sector-likely-invest-technologies-47207

http://www.livemint.com/Industry/4T8eyEJW2VsBCcGPxw7TqI/RBI-report-says-NBFCs-improving-on-performance-metrics.html

https://www.pwc.in/assets/pdfs/publications/2016/non-banking-finance-companies-the-changing-landscape.pdf

http://economictimes.indiatimes.com/markets/expert-view/you-cant-fund-indias-growth-with-just-bank-financing-vikram-limaye/articleshow/57057677.cms

http://economictimes.indiatimes.com/markets/stocks/news/sensex-has-given-9x-returns-in-last-20-years-it-is-time-to-be-a-buyer-now/articleshow/49448753.cms

https://www.mobilepaymentstoday.com/news/report-india-mobile-wallet-market-on-the-rise/

http://tech.firstpost.com/news-analysis/mobile-wallet-market-in-india-expected-to-reach-rs-1512-billion-by-2022-354944.html

http://www.ibef.org/industry/financial-services-india.aspx

Premium Plans & Advisory Services

During the last 4 years of operations, we have insisted on providing a host of support and services to our clients and hence our pricing plans were designed accordingly. But the change in the needs of our clients has resulted in the changes in both.

  1. Platform services – Platform services allow the stakeholders to manage leads themselves. This service is suitable for clients with a smaller ticket size where they can access inquiries and interest received for their business listing. Pricing starts from as low as INR 2000 (plus taxes).
  2. Advisory services – Advisory services allows access to professional assistance to manage end to end business transaction related to sale of business or assets, raising funds for investment, to acquire or invest in a business opportunity. Our advisory team of qualified and experienced professionals have been working on selected transactions. Pricing starts from as low as INR 25000 plus success fees on deal closure.

Indiabizforsale & Its Growth Journey

During my 3 years of tenure with Indiabizforsale, the platform has grown from 600 to 6000+ listings and from a team of 5 to 10+ team members. The success rate on deal closures is increasing month on month, ensuring an exponential growth of the team and the company.

News Coverage:

Click here to read about our recent coverage by Entrepreneur India.

Your One Stop Shop for all M&A and Allied Activities

Newsletter Issue 45
January 2017

Indiabizforsale.com has now become your one stop shop for all your business selling, buying, investment, funding and allied needs.

We do not just connect you with your right business match but also help you in the end-to-end transaction services related to the same to ensure fast, smooth and reliable services to all our clients.

Although currently these services are provided to clients in a limited geography but soon it would be available to clients across the country at unbelievably affordable prices.

To be able to provide you these services sooner, we would require your constant support and trust and hence we are inviting the lawyers and CA’s amongst you to empanel with us and help us provide these services in their vicinity.

Evolution of Healthcare Sector in India

Introduction

India boasts of healthcare facilities in its ancient time that were unbelievable and unprecedented for that era. Our scriptures of Ayurveda have mentions as well as cures for diseases that were believed to be incurable by most other continents and countries till a few decades ago.

Today, healthcare has become one of India’s largest sectors – both in terms of revenue and employment. Healthcare comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.

Indian healthcare delivery system is categorised into two major components – public and private. The Government, i.e. public healthcare system comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary and quaternary care institutions with a major concentration in metros, tier I and tier II cities.

India’s competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.

Market Size

The overall Indian healthcare market is worth around US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 per cent of the overall market. The Healthcare Information Technology (IT) market which is valued at US$ 1 billion currently is expected to grow 1.5 times by 2020.#

Deloitte Touche Tohmatsu India has predicted that with increased digital adoption, the Indian healthcare market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 per cent to US$ 280 billion by 2020.

Over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source.

India requires 600,000 to 700,000 additional beds over the next five to six years, indicative of an investment opportunity of US$ 25-30 billion. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in near future. The average investment size by private equity funds in healthcare chains has already increased to US$ 20-30 million from US$ 5-15 million.

A total of 3,598 hospitals and 25,723 dispensaries across the country offer AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring availability of alternative medicine and treatment to the people.

The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist arrivals estimated at 230,000. The Indian medical tourism industry is expected to reach US$ 6 billion by 2018, with the number of people arriving in the country for medical treatment set to double over the next four years. With greater number of hospitals getting accredited and receiving recognition, and greater awareness on the need to develop their quality to meet international standards, Kerala aims to become India’s healthcare hub in five years.

Investments

The hospital and diagnostic centres attracted Foreign Direct Investment (FDI) worth US$ 3.59 billion between April 2000 and March 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP).

Some of the major investments in the Indian healthcare industry are as follows:

  • Cisco Systems Inc has entered into an agreement with Bengaluru-based healthcare services provider Narayana Health, to deliver affordable specialty healthcare services to patients remotely in various parts of the country using its Virtual Expertise Digital Solution.
  • TPG Growth, the growth equity investment platform of TPG Global, has acquired a majority stake in Rhea Healthcare, which runs a chain of mother and child care centres under the brand Motherhood, for Rs 220 crore (US$ 33 million).
  • CureFit, a healthcare platform started by has raised US$ 15 million from Accel Partners, IDG Ventures and Kalaari Capital on the day of its inception.
  • Aster DM Healthcare, one of the leading healthcare group headquartered in Dubai, plans to invest Rs 600 crore (US$ 88.94 million) in various Kerala-based healthcare projects over the next three years.
  • AddressHealth, a primary healthcare network, has raised US$ 1.5 million in series A round of funding led by Gray Matters Capital, which will be used to expand its model of school-based neighbourhood clinics and school health programmes in Bengaluru.
  • PurpleHealth.com, a digital health and wellness platform, which aims to provide a seamless interface to consumers to choose medical practitioners, has raised US$ 100,000 from technology investor Katabole Technology Venture.
  • Versante Software Technologies, an Indian subsidiary of US-based IT consulting and software engineering services company Versante Technologies LLC, is in the process of raising US$ 1 million in its first round of external funding by March 2016, the proceeds of which would be used for initial promotion, and pan-India marketing and distribution of hand-held and portable patient care devices.
  • Abraaj Group, a Dubai based Private Equity (PE) investor, is set to buy a majority stake in an Indian firm Quality CARE India Ltd, which runs CARE Hospitals.
  • Qatar-based Non-resident Indian’s (NRI) including medical professionals and businessmen, are planning to set up a huge world-class healthcare project in Kochi worth Rs 1,300 crore (US$ 192.71 million)
  • American multinational technology and consulting corporation, IBM has announced that Manipal Hospitals’ corporate and teaching facilities will adopt ‘Watson for Oncology’, a cognitive computing platform trained by Memorial Sloan-Kettering that analyses data to identify evidence-based treatment options, helping oncologists to provide cancer patients with individualised healthcare.
  • Apollo Hospitals Enterprise (AHEL) plans to add another 2,000 beds over the next two financial years, at a cost of around Rs 1,500 crore (US$ 222.36 million).
  • Malaysia-based IHH Healthcare Berhad has agreed to buy 73.4 per cent stake in Global Hospitals Group, India’s fourth-largest healthcare network, for Rs 1,284 crore US$ 192.84 million.
  • Temasek Holdings Pte Limited acquired the entire 17.74 per cent stake of Punj Lloyd Limited in Global Health Private Limited, which owns and operates the Medanta Super Specialty Hospital in Gurgaon.
  • CDC, a UK based development finance institution, invested US$ 48 million in Narayana Hrudayalaya, a multi-speciality healthcare provider. With this investment, Narayana Health will expand affordable treatment in eastern, central and western India.
  • Apollo Health and Lifestyle Limited (AHLL), a wholly-owned subsidiary of Apollo Hospitals Enterprise, acquired Nova Specialty Hospitals at an estimated cost of Rs 135-145 crore (US$ 20-21 million).
  • IHH Healthcare Berhad acquired a controlling 51 per cent equity stake in Hyderabad-based Continental Hospitals Limited for about approximately US$ 45.4 million.
  • Sanofi-Synthelabo (India) Limited invested Rs 90 crore (US$ 13.34 million) in Apollo Sugar Clinics Limited (ASCL), a unit of its subsidiary Apollo Health and Lifestyle Limited.
  • Carlyle Group acquired a stake in Metropolis Healthcare Limited, an operator of pathology laboratories in India, for an undisclosed sum.
  • San Francisco-based Fitbit Inc., a fitness-tracking device maker, has launched its fitness wristbands across 300 towns in India and expects the country to be among its top five markets in next two years.
  • Home healthcare service provider Portea Medical has raised Rs 247 crore (US$ 36.62 million) in Series-B funding from investors including Accel Partners, International Finance Corporation, Qualcomm Ventures and Ventureast.
  • Practo Technologies Pvt. Ltd, India’s largest online doctor discovery company, has acquired hospital information management solution provider Insta Health Solutions for US$ 12 million which will help Practo get access to more than 500 hospitals across 15 countries.
  • Attune Technologies Private Limited, a Chennai-based healthcare technology firm, has raised US$ 10 million in a Series B funding from Qualcomm Ventures and Norwest Venture Partners in order to expand its digital healthcare solutions from the current 200 hospitals and laboratories to 25,000 such facilities globally.
  • Pluss, a Gurgaon based on-demand medicine and healthcare products delivery service start-up, has raised US$ 1 million in pre-Series A funding from IDG Ventures, India; M & S partners, Singapore and Powerhouse Ventures, US. The company would use the funding to upgrade its technology and expand presence in five cities.

Government Initiatives

India’s universal health plan that aims to offer guaranteed benefits to a sixth of the world’s population will cost an estimated Rs 1.6 trillion (US$ 23.72 billion) over the next four years.

Some of the major initiatives taken by the Government of India to promote Indian healthcare industry are as follows:

  • The government has announced that 3,000 Jan Aushadhi Stores (JAS) will be opened under Pradhan Mantri Jan Aushadhi Yojana (PMJAY) across the country by the end of March 2017.
  • The Ministry of Science & Technology has launched the innovative and indigenously developed fecal incontinence management system ‘Qora’, which was developed by M/s. Consure Medical under Department of Biotechnology (DBT), Ministry of Science & Technology supported Bio design Programme.
  • The Union Cabinet has approved signing of an agreement with the World Health Organisation (WHO) under which WHO will develop technical documents on traditional medicines which is expected to lead to better acceptance of Indian systems of medicines at an international level.
  • The NITI Aayog (National Institute for Transforming India) seeks to bring reforms in India’s public health system like outsourcing primary healthcare to private doctors and promoting competition between government and private hospitals at the secondary level.
  • Provisions made in the Union Budget 2016-17:
  • National Dialysis Services Programme to be initiated to provide dialysis services in all district hospitals to accommodate the increasing demand for dialysis session
  • A new health protection scheme for health-cover up to Rs 1 lakh (US$ 1,504) per family.
  • Setting up 3,000 medical stores across the country to provide quality medicines at affordable prices.
  • Senior citizens will get additional healthcare cover of Rs 30,000 (US$ 441) under the new scheme
  • Pradhan Mantri Jan Aushadhi Yojana to be strengthened, 3000 generic drug store to be opened
  • Government of West Bengal has introduced G1 Digital Dispensary, which aims to provide people from rural areas access to primary healthcare services.
  • A unique initiative for healthcare ‘Sehat’ (Social Endeavour for Health and Telemedicine) has been launched at a government run Common Service Centre (CSC) to empower rural citizens by providing access to information, knowledge, skills and other services in various sectors through the intervention of digital technologies and fulfilling the vision of a ‘Digital India’.
  • India and Sweden celebrated five years of Memorandum of Understanding (MoU). The cooperation in healthcare between India and Sweden will help in filling gaps in research and innovative technology to aid provisioning of quality healthcare.
  • Mr J P Nadda, Union Minister for Health & Family Welfare, Government of India has launched the National Deworming initiative aimed to protect more than 24 crore children in the ages of 1-19 years from intestinal worms, on the eve of the National Deworming Day.
  • Under the National Health Assurance Mission, Prime Minister Mr Narendra Modi’s government would provide all citizens with free drugs and diagnostic treatment, as well as insurance cover to treat serious ailments.
  • All the government hospitals in Andhra Pradesh would get a facelift with a cost of Rs 45 crore (US$ 6.67 million), besides the establishment of 1,000 generic medical shops across the State in the next few months.
  • Mission Indradhanush launched by Mr JP Nadda aims to immunise children against seven vaccine preventable diseases namely diphtheria, whooping cough, tetanus, polio, tuberculosis, measles and hepatitis B by 2020. Government has set a target of 95 per cent immunisation cover by end of 2016.
  • The E-health initiative, which is a part of Digital India drive launched by Prime Minister Mr Narendra Modi, aims at providing effective and economical healthcare services to all citizens. The programme aims to make use of technology and portals to facilitate people maintain health records and book online appointments with various departments of different hospitals using eKYC data of Aadhaar number.

Road Ahead

India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep.

India’s competitive advantage also lies in the increased success rate of Indian companies in getting Abbreviated New Drug Application (ANDA) approvals. India also offers vast opportunities in R&D as well as medical tourism. To sum up, there are vast opportunities for investment in healthcare infrastructure in both urban and rural India.

[As written in: http://www.ibef.org/industry/healthcare-india.aspx]

Vibrant Gujarat 2017 & IndiaBizForSale.com

 Vibrant Gujarat Summit 2017 saw a host of ups for many industries, business houses, small – medium sized businesses and startups. It boasted of international delegation from around 20 countries and MOUs worth 1000s of crores signed. It gave every visitor and exhibitor a different experience and opportunity.

IBFS was fortunate enough to be one of the exhibitors at the event and we had our own share of experiences, learning and opportunities that we have taken from the event. The event proved to be very educational not just for us but also for all those who visited us. Some of the key takeaways for us were:

  1. Connecting with 1000s of new people – The biggest advantage of being in such a large scale event is meeting new people and bringing awareness about how we provide a platform as well as a network of business buyers, sellers and consultants interested in selling, buying, investing in a business, raising funds etc and how we can we help them get connected with this network to help them achieve their business goal and lastly to have a better understanding of what people really expect from a business like ours.
  2. Businesses give more preference to growth than exit – Majority of the business owners and top level executives that we interacted with were more keen on knowing about how they could grow their existing business whether that be via investment, acquisition and funding or via distribution and franchise network than making a profitable exit from it. There was a gungho about the possibilities of business growth not just from the visitors but also from fellow exhibitors.
  3. Lack of awareness about possibilities – A lot of people who visited us were not even aware of the future possibilities available in the market for their businesses, like a business could be Sold even if it was incurring losses or a business can look for working capital in lieu of equity or a small business can also look for only partial exit from the business or that they can grow their business via franchise and distribution network.                                                                                         
  4.  Possibility of becoming our extended arm – We have created a parallel network to help in the deal making process for our selected clients. The same under the brand name of ‘IBGrid’ was introduced at the event. At IBGrid a Chartered Accountant can become our affiliate and together we will close some of the Businesses available for Sale on our platform ‘IBFS’ and they can earn hefty commission. Along with this the CAs can also list their clients requirements and generate leads to close them. A lot of CAs showed keen interest in knowing more about this to become a part of this network.

Note from our Team member

Evolution is a constantly ongoing process to upgrade and become better versions of ourselves. My evolution story at Indiabizforsale has been quite aligned with that of the organization. When I had joined the organization it was just a listing platform with a 5 member team and with simple roles of understanding businesses and getting the two sides connected and 2 years down the lane we have evolved to serve end-to-end business transactions.

Review – Our View, Your Evaluation!

Newsletter Issue 44
December 2016

New Year Greetings from IndiaBizforSale.com

Managing expectations of the growing platform has thrown new opportunities as well as challenges. This year has been a great deal of learning for most of us at IndiaBizForSale.com. Our number one goal has become number of successful transactions, rest all are hygiene factors.

Impactful events of 2016

This year has given the Indian businesses both big and small its own share of reasons to rejoice and lament. The 5 biggest and most impactful events for the businesses in India have been:

1. Demonetization of Rs 500 & 1000 currency notes
As business owners and operators, we have already gone through the harsh reality of demonetization of the currency notes and the ripple effect it has caused in our day-to-day lives. A lot has already been said about its effects and the chaos it has created in our economy. Some experts have praised it while others have left no stones unturned to criticize it. In our opinion, the demonetization drive would help the semi-organized Indian economy to be organized and become more robust in its activities and outcomes (however, as always the common man would be the biggest sufferer).

2. Launch of Reliance Jio – the biggest telecom disruption
Launch of Reliance Jio has not just affected the small players like Telenor & Aircel and made it difficult for them to survive but even the giants like Airtel, Vodafone and Idea are facing the brunt of it and have lost not just in terms of revenue but their share prices are also on a constant dip. The almost free services offered by Reliance Jio has created a storm for people to either switch to it or expect their service providers to give better offers which most of them are unable to resulting in a massive loss of loyal customers as well.

3. Launch of Start-up India by PM to encourage innovation and entrepreneurship
The launch of startup India campaign by PM Narendra Modi acted as a feather on the cap. The initiative aims at encouraging citizens of the country to hone their skills, work for their desires and become entrepreneurs and reduce the bureaucracy that hinders people from following their dreams and discourages innovation and possible growth of the economy. To add to this initiative the Smart Hackathon Initiative has also been launched by the HRD Ministry of India in collaboration with various other ministries to encourage the students from various technology colleges to innovate and have their own startups.

4. Various government initiatives like Indian Enterprise Development Service (IEDS) for SME’s
Other than encouraging new innovations, initiatives and startups the government has also implemented various initiatives and plans for the SME and MSME businesses of the country, encouraging them in various aspects from embracing technology and becoming more advanced to providing them infrastructure and support to grow and flourish better.

5. Inclusion of 5 Indian companies in the Forbes list of 100 most innovative companies of 2016
Asian Paints (#18), followed by Hindustan Unilever (#31), Tata Consultancy Services (#66), Sun Pharmaceutical Industries (#73) and Larsen & Toubro (#89) are the 5 Indian companies that made their space in the Forbes list of most innovative companies of 2016 and made the whole country proud. Being in the same list as companies like Tesla Motors, Under Armour and Amazon is a clear indicator of the extent of inclination and dedication these companies have been putting towards innovation.

The Role of Advisors in an Evolving M&A Market of Small Businesses!

Is small beautiful?

Of course it is. And who would know it better than you! Whether you are a buyer or a seller of small business, you are in a unique position to appreciate the risks and rewards that come bundled in the process of owning, running, and exiting a small business. Until recently, deal advisors, brokers, and consultants were seen as gatekeepers of the high-stake strategic investments of large size. Clash of titans culminating into acquisitions, or hungry deep-pocket firms gulping down technology companies were traditionally the mainstay of investment bankers.

Today, however, the emerging trend of M&A in small businesses have carved out a fresh avenue for deal experts (Read More) – consultants and brokers are as much vested and needed when small businesses change hands today as they do for large businesses. In case you are wondering, M&A in small businesses are not as uncommon as they used to be! Recently, at IndiaBizforSale, a defense manufacturing company received strategic buyout offer from a Bangalore-based player in allied sector. How then does a transaction advisor fit into the microcosm of an SME? More importantly, how do you stand to benefit from their involvement in a transaction?

Negotiation – Leave it to the Masters

Let’s face it – many of us get cold feet in a board room. It doesn’t mean that we / our business are lacking in any way, it simply stems from the fact that we are not always the best people to argue, speak hard math, battle counter-points and get what we deserve against all odds. More often than not, a negotiation with a strategic buyer is best left to the experts – consultants who act as investment bankers and business advisors for parties. You will be surprised by how much ownership and sense is brought to the table by a seasoned advisor.

Transaction Terms and Structuring

An M&A deal can involve a range of transaction instruments such as cash, seller notes, equity, earnouts, and others which can be extremely consuming for a non-finance person to understand and follow, let alone decide the best for himself! A business consultant comes with professional background and experience in structuring deals and setting transaction terms. Focus on the core deal yourself and let your broker weave his magic on the peripherals!

Sale Preparation – He Who Sees it All

Who said consultants only add value to transactions? If you are unsure about getting the best value for your business from the current state of advisors, get an advisor to do an all-round assessment of your business and advise you on sale preparation. You will not regret it.

Facilitating Sales Process

New to M&A? Need a holding hand to walk you through each and every step of an M&A? Consultants and brokers are your best buddies. They come with rich legacy of several transactions, understand your plights, and have seen the situation from both ends of the table. Hire one today and soon M&A will be a cakewalk for your small business!

Sourcing Buyers

Is it a surprise that consultants, who come with a professional network of potential buyers (and sellers), can help you source prospective buyers? Not just sourcing – hired business advisors become brand ambassadors for your company, provide you with credibility and seek out buyers that match your needs. Leverage their network and maximize the chances of finding a buyer.

Managing Your Business

It can be a daunting task to balance managing business on one hand and taking care of an ensuing M&A on the other. Your business advisor is your partner – since no one can run your business better than you, ease of the transaction load to him while you keep your reins on the business. You will be amazed by how liberating it feels!

As you now realize, with the advent of M&A wave in small business, consultants and brokers have come of age and play a pivotal role in ensuring smooth transactions. Look for a consultant with experience in your industry and good reputation. If you have any queries on the role of advisors and how to find one, reach out to us.

Review of Business Verification Service

With increase in the number of businesses available for sale need has emerged to ensure the accuracy of the information provided and to fulfill this very need we started verifying the businesses available on our platform so as to ensure that both the buyers and sellers have a realistic view and get the maximum benefits of their presence on IndiaBizForSale.com.

The process of verifying a business has been very cumbersome but equally rewarding. Currently, we have selected a small pool (Read More) of businesses that are being verified and have received an overwhelming response from them. We have received all the requested information whether It be business’s last few years’ financials or pictures or any other confidential details and our team is meticulously checking all the information provided so as to ensure that only the verified information is available on the listing.

The enthusiasm demonstrated by the users towards getting their businesses verified and in wanting to connect with verified businesses also led to creation of a special filter just for the verified listings.

To add a cherry on top, 2 businesses listed on the platform got Sold within a couple of months of being verified and 1 more is in process of being acquired.

On the whole businesses with verified tag are getting 3-4 times more views and inquiries than others and hence more and more serious sellers and getting in the queue to get their business listing verified at Indiabizforsale.com.

How can we help you better?

We have been working scrupulously for the last 4 years to provide the best of both worlds. We would now love to hear your opinion on how can we help you better. (click to fill the 20 second survey)

Innovation as Growth Catalyst for Businesses

Newsletter Issue 43
November 2016

Any new creation begins with an idea; and who can understand this better than a business owner.

For running a business, growing a business and making it successful, we constantly use ideas and modify them to fit our needs.

In a nutshell, we constantly innovate. In today’s world, the leading business houses across the globe are successful because of their innovation. Innovation not just in terms of technology but in all aspects of their business; whether it is sales and marketing, business strategy, operations, ethics, work culture or environment.

Internet giants Google and electronics giant Apple are the biggest example of the quote ‘Innovation as Growth Catalyst’.
Continue reading “Innovation as Growth Catalyst for Businesses”

Change is the Only Constant

Newsletter Issue 42
October 2016

diwali

Change is the only Constant in Life and we are changing too 
  1. To ensure that you get the maximum benefit for all your business Mergers & Acquisitions, Investment and Partnership activities.
  2. To support you for your end-to-end Business transactions.
  3. To fulfil our promise of helping you get connected with your best match. 

And now, instead of meeting you only once every month, we will now meet you thrice. Twice with our featured business proposals & Once with insightful information for your business and industry. Continue reading “Change is the Only Constant”