Structure of acquisition financing: GE Commercial Finance

Abstract

Ever since Liberalization took place in 1991, several new doors have opened up for Indian corporates to capture a bigger piece of the non-discriminatory multilateral trade. Earlier, there was an accent on inward flows like FDI, portfolio investments, joint ventures and collaborations to tap the growing Indian market, and also technology transfers from the developed countries for enhancing competitiveness of Indian firms. Exports were considered the predominant force in making India a part of the global village. Now, the scenario has changed and focus has shifted towards establishing ourselves globally by mergers and acquisitions. There is a growing realization that the future growth of Indian companies will be influenced by the share that they can gamer in the world market, not only by producing in the country and exporting, but also by acquiring overseas assets, including intangibles like brands and goodwill, to establish overseas presence and to upgrade their competitive strength in the overseas markets.