According to a recent survey by Ernst & Young 54% of the Indian companies surveyed said they are likely or highly likely to acquire other companies in the next 12 months. It’s not just acquisitions of local businesses but in recent months the interest in overseas business acquisitions as a means of expanding into global markets has also been on an upward trend.

The economic mood in India is positive and the cautious ‘watch and wait’ approach that was the norm during the two years of economic downturn is quickly being replaced by a ‘acquire and grow’ outlook on the part of many businesses. With business having picked up since the financial slump across the globe, many companies find they have increased cash flows and greater liquidity which could be allocated towards a more aggressive growth strategy not just within Indian markets but tapping into global markets too.

Given the risks of making greenfield investments in completely new markets each with its unique challenges, the cross-border acquisitions is becoming increasingly attractive to Indian companies with global plans. With the Euro at a low and prices in Europe and a few other places having stayed somewhat horizontal since the economic crisis, now is as good a time as any for acquisitions and a number of CEOs have moved evaluation of acquisition opportunities high on their agendas.

The availability of global advisory services is playing a central role in the process of helping companies in India allocate their liquid assets into offshore investments and acquisitions. By extending the ability of companies based locally to scout for acquisition opportunities through their global networks, evaluate them and mobilize deals from India the time between initializing interest in acquisition to closing the deal is significantly reduced as compared to previous years. This not only makes cross-border acquisitions a much more viable growth strategy for Indian companies but also helps connect overseas businesses looking for an exit option which may well be through an Indian company.

Whatever the final outcome of the large percentage of businesses in this study who showed positive intent to acquire, we can be sure increased liquidity and availability of funds is a sure sign the deals will flow in the coming months!