Singhi Advisors expects to close 20 mid-market transactions by FY25

Mergers and acquisitions advisory firm Singhi Advisors expects to close at least 20 transactions by the close of the next financial year, said Mahesh Singhi, the firm’s founder and chairman.

The mid-market companies in the country, with valuations between $100 million and $1 billion, have significantly added value in the last few years, Singhi told ET on Thursday on the sidelines of the Mergers Alliance Autumn Conference in the city. To sustain these higher valuations, these companies will continue to look for expansion opportunities, especially through acquisitions, he said.

Meanwhile, several buyout funds which have acquired platform companies will also be on the lookout for more targeted merger and acquisition opportunities to bring scale to their existing businesses and will aim to build sizable future-ready enterprises, Singhi said. Companies may also explore options like qualified institutional placement or follow-on public offerings to raise capital at the prevalent valuations to fund acquisitions.


“The key focus areas for Singhi Advisors will be industrials, auto and building materials. These segments will lead M&As in the coming months,” he said.

Mergers could turn out to be a popular option for companies to explore in the coming months in an environment of rich valuations and expensive capital, he said.

“The biggest reason to defer the decision of acquisitions is that the buyer thinks the valuation is too expensive or the seller feels it is not high enough. And that's where the biggest problem comes. But then a middle path comes in at times like this of a partnership or joint venture or a merger. So then, we as the advisor, try to find a path,” he said.