Why In-organic Approach

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We’re at the dawn of a golden age of rapid business innovation. However, today’s ever-shortening innovation cycle can make traditional partnership structures like mergers and acquisitions (M&A) or joint ventures (JVs) too slow, costly, and cumbersome to innovate at the speed necessary to keep up with the market.Mergers and acquisitions require one company to have enough resources to buy another, which entails diligent, time-consuming negotiation and documentation. Joint ventures, although less complex, also require a high degree of rigor around revenue and cost-sharing.

  • Nearly one-third of the firms surveyed have formed a strategic alliance with a company in their industry, and one-quarter have partnered with a player in a different industry.
  • Nearly a third of financial sector organizations have formed strategic alliances with their counterparts to address disruptive forces.
  • Indian Subsidiary pricier than FOREIGN PARENT- Frequently observed that MNCs in India are getting valuations of up to four times higher than their global parents. Higher Price-to-earnings multiple means investors expect Indian MNCs to clock faster growth in profits than their parents. This is due to the given fact that the relative stability of the economy, investors are willing to bet on high-quality MNC stocks in India if they are adequately priced.