We advised a European company on buying out the majority in a privately owned company.

Our initial mandate was to explore the alternatives of an acquisition or a greenfield entry, the latter giving us a clear understanding of the cost structures of the industry. The client’s preferred route to invest in India was through acquisition, and we identified and reviewed a number of potential candidates, focusing on a company based in South India.

Valuation expectations were high on the vendor's side, and we sustained the discussions over a prolonged period, eventually reaching agreement some 12 months after the initial contact. We assisted in a detailed due diligence and the obtaining of regulatory consents. The process gave the client valuable experience in a new market.

Subsequently we have assisted the company in a number of issues related to financing and personnel.

Indian vendors do have high expectations of value, based on the growth that India is experiencing, and there are many cases where their interest in price can outweigh the long term commercial interests of the business – lengthy negotiations can often have damaging effect on the underlying business. It is also important that the buyer understands the negotiation dynamics and that expectations as to the outcome are well managed.