Of Deals And Dealmakers

“I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.” — Alan Greenspan.

The dealmakers in this special issue of BW Businessworld, anchored by our deputy editor and banking specialist Raghu Mohan, have passed the satisfaction test Alan Greenspan talks about. The i-banking package on the deals that made headlines, the fine print in these deals and the overall trend is captivating. The 2015 M&A (mergers and acquisitions) numbers will read $22.5 billion in value, down 60 per cent from those of 2014. The cover story looks at where we are headed in 2016 and the possible reasons behind the trend.

The nature of the i-banking business is such that most are not willing to part with the kind of information that jurors seek. The reasons for such reticence vary from client confidentiality to the proprietary nature of the structure in a transaction. A corporate may not want the i-banks involved to reveal information it feels is sensitive to its interests. In short, information is hard to come by, but all efforts were made to get the details, the constraints notwithstanding. Doing so involved two meetings of four hours each and almost a month of consultation among the jurors.

The diligence on display was of such a high order that had the jurors been i-bankers, many of the deals may not have seen the light of day! It is pertinent to point out that in terms of volume, private equity (PE) deals have consistently been the highest across categories and based on value, they have been the second highest after cross-border M&A. This issue also includes important PE/VC (private equity/venture capital) deals and the bankers behind them.

The i-banking issue goes to print at a juncture when Raghuram Rajan has announced his decision to step down as RBI governor. Rajan will be known for his honest efforts in ensuring that banks declare their NPAs (non-performing assets) along with the true numbers. In some ways Rajan has laid the foundation for a banking system that is much stronger than the one that existed before him.

The Indian financial system and the banking sector have built-in checks and balances and they thrive and grow under an able leader — the leadership mechanism is truly institutionalised and not personality driven. I see Rajan as an ambassador for India in the global financial system, and he will continue to remind us that our best lies in the next few years.

Overall, the i-banking special issue offers a peak into the marquee deals in Indian business that will define the winners of tomorrow.

Senior editorial colleague Noor Fathima Warsia debuts with her column ‘Noorings’ in this issue, with her take on developments in the realm of marketing, advertising, communication and media. Adman-turned-startup-entrepreneur Shivjeet Kullar joins the list of regular columnists with his ‘Point Blank’ column. Besides, read associate editor Ayushman Baruah’s report on the resurgence of BPL, as well as about the malaise afflicting the Rajya Sabha in a guest column by leading lawyer G. V. Rao. Hope you will enjoy reading this issue.