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

IndiaBizForSale.com Just Crossed 2500 Business Listings! – Here’s Our Journey So Far

IndiaBizForSale.com started in 2013 with the core mission of helping small and medium business owners sell their businesses instead of closing shop. Back then, we were largely business owner(seller)-centric – i.e. only sell-side listings existed on our platform and made a humble beginning with just 50 businesses looking for exit listed on the platform.

The first revelation happened when we discovered that our platform could also serve buyers and investors in a large way. While we always had buyer registrations, we soon noticed that the number of registered buyers on our platform was 2-3 times more than that of the sellers, and yet we did not have any buyer listings yet! 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.

After a while, we again widened our scope in another direction – this time towards expanding the kind of transactions we supported. While our platform always had the option of part-sale, it was focused more on asset-sale and sale of non-core business. Soon, we realized that our platform can also help businesses looking for more mainstream growth options such as raising investment, joint ventures and distribution partnerships, and so we widened our listing opportunities to include such growth options as well.

In this way, from a seller-centric platform we became a business matchmaking platform, and today we have listed over 5,500 buyers and investors, and 2,500 sellers and over 25,000 registered professionals are using our platform.

Even as we speak, we are reaping the benefits of 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! Over the last few years, we have successfully closed multiple deals across several sectors such as Healthcare and Pharma, Education, IT and ITes, Manufacturing, and Financial Services.

More recently, we also filled a critical gap in the ecosystem by addressing 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 where we extend expert transaction advisory services, dedicated attention of a deal associate, and high-involvement deal-making services such as negotiation, targeted scouting, and tapping into third party deal prospects.

We took this a step further by pioneering a novel deal-making event in India called the Business Buyer’s Club. It is our ambitious attempt to fast-track deal discovery by bringing together highly curated and credible prospects from both buy-side and sell-side. Handpicked businesses were showcased to a cohort of genuine buyers and investors in Mumbai and Ahmedabad, followed by networking and matchmaking that facilitated personal interaction between buyers, investors and business owners. We have received tremendous response from the event participants in Mumbai and Ahmedabad, and along the way we also joined hands with esteemed organizations FICCI and GCCI who shared a joint vision with us – and event outreach partners such as eChai, TiE and ah! Ventures. We are thankful for the enthusiastic support we have received from every corner and more events like these are definitely on the cards.

Even as we evolve and transform, our larger goals remain the same – we are here to make SME deal-making hassle-free, quick, and exciting, and have miles to go before we rest.

Each Business is a Disruptive Force in Itself

Newsletter Issue 52
August 2017

The key to any transformation is disruption. You can either be a follower by imitating the new, or you can be the new. Businesses that disrupt markets, alter economics with technology and innovation, and overcome barriers creatively, lead the future. Whether small or large, each business is a disruptive force in itself – and a powerhouse of endless potential.

How Demonetisation Disrupted the Payments Sector in India

India’s monetary policy took an unprecedented turn on November 8, 2016, when Prime Minister Narendra Modi announced pan-India demonetization. By withdrawing the existing Rs 500 and Rs 1000 notes from the system, nearly 86% of the cash in circulation at that point of time was rendered unusable.

What started as a means to fight corruption, black money and tax evasion, also became the biggest disruption ever, for the country’s digital payments sector. This article, will highlight how demonetization turned around the payments industry in India through a policy-driven fintech revolution.

Surge in Plastic Money (Debit Cards, Credit Cards, PoS) – Not surprisingly, the immediate effect of cash crunch in the system was a rise in the use of debit / credit cards. The number of debit card transactions increased to over 1 billion in January 2017 (up from about 817 million in 2016). Of these, while the number of ATM withdrawals and transfers have remained more or less the same at around 700 million, the additional growth has been mostly due to card swipes at Point of Sale (PoS) terminals.

The volume of PoS swipes increased by 300% to 328 million (up from 109 million in January 2016). Banks collectively set up additional 1 million PoS terminals within three months of demonetization announcement, thereby making the total number of PoS terminals in the country reach a record figure of 2.52 million.

Prepaid Payment Instruments (e-Wallets) – While plastic money stole the show in the beginning, soon digital wallets took the centre stage. Digital wallet is a fintech innovation that allows customers to pay, receive and hold electronic money from the convenience of any location as long as they have a laptop / smart phone and internet connectivity. Players like PayTM also have additional features like wallet-to-wallet payment through QR code, and withdrawal of wallet balance to bank.

Prepaid Payment Instruments (PPIs) reported 350% rise in the volume of transactions on an average in January-March quarter of 2017, from that in 2016. In March 2017, the volume of PPI transactions stood at 342 million, up 375% from 72 million a year earlier. For PayTM, the largest digital payments startup in India, the daily transactions increased by 300% to 7.5 million. Mobikwik, another e-wallet startup, grew its transaction volume by four times. Recently, PayTM also received approval from RBI to set up a payment bank.

Payment Apps and Gateways – Pure-play payment gateways are different from digital wallets in terms of these being only transaction facilitators and enablers. CCAvenue, Razorpay and InstaMojo are a few examples of payment platforms, which enable individual and corporate payments by either connecting to e-wallets or to bank accounts directly.

The Bharat Interface for Money (BHIM), an ambitious digital payment application launched by the Prime Minister on December 30, 2016 has already been reported to have 10 million downloads so far. In the four days post its launch, BHIM clocked in 700,000 transactions – a commendable feat. As a convenience payments app, BHIM is connected to more than 30 private and public sector banks in India.

According to a recent NASSCOM report, India’s fintech industry is estimated to reach 2.4 billion USD by 2020, from just 1.2 billion USD in 2016. While demonetization provided the much-needed thrust for the payments sector, for sustained growth in the future we will need improved digital infrastructure, increase in the payment options available, rise in the number of POS terminals, EMI option for bigger purchases, better security of transactions, increased trust and confidence among the consumers, and a means to overcome the rural-urban divide in accessing payments technology.

Better regulations and policy-making coupled with innovation and seamless execution by fintech players will lead the way forward for India’s dream of corruption-free, near-cashless economy.

Event – Business Buyer’s Club – Ahmedabad

After successfully organizing our pilot event in Mumbai, we are organizing the second Business Buyer’s Club event in Ahmedabad. This is an exclusive deal making opportunity for businesses, buyers and investors from Ahmedabad and Vadodara.

We are showcasing 10 businesses shortlisted by our analysts. As a buyer/investor, you’ll have the opportunity to know these businesses closely and interact with its promoters directly. This is an exclusive event created with the sole purpose of helping our clients reach their goals faster.

For registration or any further details, click here.

How to Prepare Your Business for Growth in a Sluggish Economy

Guest Contributor: Gagan Ghai, Crest Capital Advisors

Growing a business in uncertain economic climate presents harder challenges. However, with appropriate mentorship and guidance, entrepreneurs can thrive regardless of economic conditions. Over the past few years, we have helped several businesses rethink & re-structure their core strategy to outrun competition and protect their businesses against bad times.

While there are no hard and fast rules, here are some of our key learnings from working with businesses, which you can apply to achieve your growth objectives for your business.

  1. Diversify Your Customer Base

If your business is too dependent on one or two customers to generate the bulk of sales, it is at significant market risk.

In the case of one of our clients, who happened to be in the business of institutional supply of clothing, we found that even a small degree of diversification in the customer mix resulted in superior financial performance, not to mention higher stability.  Regardless of the size of the business, diversifying client base has its own benefits. Often, the most diversified firms experience faster growth that their non-diversified counterparts.

  1. Focus on Your Best Customers

While it’s important to ensure that you have the right mix of customers, it’s also wise to treat your best customers (Category A) with extra attention. By nurturing relationships with key customers and building their loyalty, you can grow along with them.

A case in point is a client of ours – a creative & design agency. By bringing razor-sharp focus on the most important clientele, we have helped them in solving the purchase behavior issues & overcame the challenges with regard to serving their most important client. The agency acted on our advice and has now become the best fit for its key clients, not just for a particular service but for a range of value additions.

  1. Proactive Approach to Marketing

No product or service sells itself, especially not in a slow economy. And word-of-mouth marketing often isn’t enough to grow a business. You need to define and promote your unique selling points intelligently. Consider creating a well-defined marketing strategy that defines your target customer, uses the right tactic to reach them and uses quantifiable metrics to measure the results. We have been advocating competitor analysis to all our clients to monitor marketing positions regularly and thereby, get optimum results.

  1. Focus on Strategic Goals

While it is easy to get lost in routine details and neglect your strategic plan, the consequences can be severe. It’s essential to keep your mission and vision in mind as you go about making day-to-day operating decisions. Know what your strengths are, what you want to achieve and how you plan to get there. Also, make sure that you keep your strategic plan documented, updated and shared across key team members.

  1. Foster a Positive Attitude in the Team

Everyone within the organization needs to be trained and coached to understand the business’s strategy and proactively promote the business at every opportunity. When you hire, look for people who not only have the right qualifications, but also the right attitude & passion.

  1. Monitor Your Cash Flow

Most entrepreneurs are only focused on managing the bottom line by monitoring sales, gross margin and expenses. But, they often ignore cash-flow management. It’s important to balance short-term and long-term needs with short and long-term sources of funds. Many early stage businesses close down due to sheer mismanagement of funds raised and incomes accrued over time without proper planning.

We would be happy to answer growth challenges faced by entrepreneurs and would be glad to assist in multiplying his / her business together.

Our Guest contributor can be connected via LinkedIn

Team Member Message

Fintech sector is one of the biggest sectors to have emerged since the disruption in the Indian economy because of demonetization. Yet it still has a long way to go before it experiences its highest point. We at indiabizforsale a fintech company, are helping businesses, buyers and investors in India to grow with the use of technology and our expertise in deal making.

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.

We Are Growing, Are You With Us?

Newsletter Issue 38
June 2016

Happy Monsoon!

During the month of June, we have expanded our Client Success team & Tech team to further support the increased interest from our users. We have also launched new services like Business Verification and Business Valuation.

Above all, we have yet another business transaction closed in June. This time, the business sold was a packaged drinking water plant in Delhi (asking price range INR 5Cr-10Cr); the business found a buyer from Delhi, deal done in 3 months from the introduction.   Continue reading “We Are Growing, Are You With Us?”

How to Grow Your Business in 2016?

If you have been pondering over growth opportunities for your business, the timing could not have been better. In October 2015, growth of India’s industrial output reached the highest in the last 5 years. The overwhelming 200+ acquisitions in the startup ecosystem alone, coupled with prominent nation-wide initiatives such as Make-in-India and Digital India, have made 2015 the apt stepping stone to 2016 – the year of growth.

Continue reading “How to Grow Your Business in 2016?”

Growing Trend in SMEs Industries

In today’s globalized world India has emerged as an engine of global economic growth where the average GDP run rate is 7.2 per cent. This is encouraging creation and implementation of more and more policies focusing on further growth. The government’s intent to rejuvenate the Indian economy has positively affected the business environment. Indian companies are now getting more aggressive in acquisition scenario as they can see the government’s vision. This is completely visible in the market because of some major takeovers that have happened in the recent past.

The problem arises with MSME (Micro, Small and Medium Enterprises) segment where it is difficult to exit or expand i.e. selling a business or buying a business since it is difficult to market them and help them reach the right audience and also because of the high charges of investment banking companies.

Continue reading “Growing Trend in SMEs Industries”