How India Inc. could write a new chapter

Indian companies could unlock substantial value by selling businesses, and now may be a particularly propitious time to divest. Our research finds that companies should consider private equity buyers, which have historically been willing to pay more. PE firms’ ability to attract top talent, undertake transformations, and employ better capital discipline may explain their willingness to bid more than strategic buyers.

Private-equity firms have historically paid higher enterprise value to EBITDA multiples than strategic buyers during the 2014–20 period in India.

To read the article, see “Unlocking value through divestitures: Can Indian firms seize the moment?,” July 20, 2021.