India outbound M&A financing: why corporates should look beyond LBOs: [1]

Abstract

Participants in the India Outbound Investment Forum said that they are looking towards new methods of financing beyond traditional LBOs. A recent trend had been developing for joint venture (JV) partnerships or transactions using cash reserves. The panel had mixed views about LBOs, which have fallen out of favor with the Reserve Bank of India. While LBOs are controversial, they best suit large transactions. Raising capital for outbound M&A by mid-size unlisted companies was relatively challenging. Gaurav Khungar encouraged Indian corporates to look towards private equity as an untapped source of capital.