India Inc should not ignore ‘culture’ in M&A scenarios: Bain and Company

"Culture eats strategies and synergies for lunch" – these words of wisdom come from Dinkar Ayilavarapu, Partner, Bain & Company. He warns corporates that culture, which can have a major impact on deals, is under-rated in Indian M&As. In an exclusive chat with Moneycontrol on the launch of the firm's "India M&A Report 2019" in collaboration with CII, Ayilavarapu says that a clean deal thesis, robust diligence and integration are key to a transaction's success.

"The insolvency and bankruptcy code is a new law and once there are more precedents, there will be more transactions and more clarity," Ayilavarapu adds. According to the report, 2018 was a blockbuster year in India's M&A space with 70 percent growth coming from stressed asset deals.

Ayilavarapu lauds the government's recent move to slash headline corporate tax rates and suggests that the move will impact margins and make Indian targets more attractive in inbound M&A scenarios.

Watch the video for more.