Master Class on Mergers & Acquisitions (M&A) for Business Owners, HNIs, Corporates, Investors

Enabling Growth of Pro-active Companies

Master class on M&A I How to Grow Retail Franchise I
Top Business Opportunities & Investors

 
   
  • V C Karthic is a serial entrepreneur, angel-investor, leadership coach, startup mentor and contributor to the startup ecosystem in India. 
  • Among the highlights of his exciting journey is founding Buzzworks in 2001 (IT solutions company), which has more than 15,000 employees on payroll with multi hundred crore turnover in a short span.

Recently, IndiaBiz had invited him to address a Masterclass where he talked about “Acquisition and Investment as a Growth Strategy”. Major aspects covered were:

M&A Mythbusting > Investment thesis > Large Pipeline > Management Meetings > LOI –  Negotiations  >  Closure

Reply to this email now to receive a link to this Masterclass session by V C Karthic.


 
 
Hearty Mart Supermarket (started in February 2004 by Mr. Nadeem Jafri) has grown into a chain of retail stores operating under the brand name of Hearty Mart. Standing amidst the bigwigs operational in the Indian market, Hearty Mart is a name that is emerging and focusing on tier 2 and tier 3 cities in India and making inroads into the rural sector. With access to very limited capital, learn how Mr Nadeem Jafri grew Hearty Mart into many franchises and different verticals. Click to read more

Top Buyers & Investors


Latest Business Opportunities

Why Deals Fall Apart?

If it is important to you, you will find a way. If not, you will find an excuse.

Whether you are a business buyer, investor or a business owner, you must be wondering, what are the conditions that can make or break a deal. We have worked closely with thousands of users over the last few years in buying, selling, growing and fund-raising for businesses, and one of the most common questions we get asked is: What can make or break a deal? In this article, we bring to you our exclusive insights on keeping a deal smooth and hassle-free. Over the last few years, we have helped thousands of users on our platform to discover the best deals to buy, sell, grow and fund businesses, and this is a common question we get asked. While there are no hard-and-fast rules about stopping a deal from collapsing, there are, however, a few important principles that both parties in a deal can follow which can make or break a deal.

  1. Transparency and Honesty: This is a no-brainer. Would you ever like to enter into any transaction with someone whose ethics, integrity and morals are in question? Most likely not, and the same holds for the other party. The best deals are those in which expectation settings are clear right from the beginning. This is not to say that you must lay bare all the sensitive information about your business on the very first day. You can take your time and qualify buyers as per their seriousness and interest in your business before giving out critical information. However, do not lie, misrepresent or miscommunicate, and encourage the other party to do the same.
  2. Trust and Confidence: Sometimes, it is not enough to be just honest yourself. You have to give a chance to the other party to demonstrate honesty and commitment to you. We have seen a number of deals fall apart where either one or both the parties refused to walk the last mile with each other despite long discussions and no visible breach of honesty. There are a number of legal tools available to enforce understanding between two parties even before the deal actually takes place. But, in the end, these are just tools – you will have to cultivate the trust by yourself. Seasoned deal moderators and mediators often come handy in developing rapport between parties and getting the deal through.
  3. Realistic Negotiations: An important thing to remember is that, negotiations on aspects like valuation, payment terms, rights and obligations, etc. are meant to bring out a fair deal structure, and not to solely serve the interests of any one party. For example, a common mistake that business owners make is to overvalue their business. Get your business valued by an independent valuation expert to avoid unnecessary conflict. Have a seasoned negotiator on-board to help you get the best out of the deal without undercutting the other party.
  4. Seamless Communication: A deal is never just a piece of paper. It happens between two people, or two parties, and to bring the deal to closure through a long journey, it is important that communication between them is regular, well-timed, and two-way. Take out time to listen to the other party and voice your own concerns. Rope in your consultant when needed, but stay connected to the deal at its core by getting regular updates. Technology has made life easier today, but it won’t harm to meet each other once in a while and iron the kinks out. It is also important that you talk about things outside the deal such as your work experience and professional background, future plans, and so on.

So, what are you waiting for? Discover the perfect business opportunity that matches your preferences and get the deal of your dreams with Indiabizforsale.com, the most preferred network to buy, sell, fund and grow businesses in India. To know more about who we are and how we can help you, write to us at [email protected].

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.

Positive Sentiments in M&A Activity in India Sets New Trend

Largest global corporate that includes Indian tycoons are expected to exhibit huge appetite for M&A transactions in the year 2014 compare to last year, as per the KPMG International latest Global M&A Predictor. Isn’t it encouraging?In addition to boosting confidence, global analysts are also predicting corporates to manifest improved potential to undertake transactions in this year than last year.

The Indian M&A activity has begun to witness more traction and improved interest in the later quarter and expect it to continue at the end of 2014 also, making it a much better year.

Continue reading “Positive Sentiments in M&A Activity in India Sets New Trend”

Selling a Family Business Made Easy

Selling a family business is not forbidden in India. Let it grow rather than making it a stagnant pool of water. Communication plays an important role in any aspect of life. Off late, we understand the significance of communication especially in the long run of business. It compiles of business strategies, verbal and non-verbal, official and confidential. At the same time, lack of communication can ruin the business to the dust. Exchanging information and conversing with others can boost business relationship. There are a few points to be considered before selling. You need a perfect vision to sell your business.

Continue reading “Selling a Family Business Made Easy”