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United States of America, the land of entrepreneurship
and the most prosperous economic market in the world
is considered an ideal destination to establish corporations
for the Indian companies in order to expand their horizons
keeping abreast with the globalized world. However,
at present, the Indian corporate groups are becoming
aggressive internationally, not just in terms of launching
their products and services in new markets, but also
acquiring overseas ventures and getting their companies
listed on international bourses. Moreover, with India’s
foreign exchange reserves having ballooned to over $140
billion, the government has also withdrawn most exchange-related
restrictions, especially for overseas acquisitions.
Acquisition of US Companies by Indian companies helps
accelerate the pace of growth, streamline technology
transfers that enhance skill sets across verticals,
presence and visibility in brand new domains, newer
clientele and a geographic expansion of the market.
In this context, the Indo-American Chamber of Commerce
(IACC), Chennai Chapter organized a seminar on “Doing
Business with USA - Acquisitions of US Companies - A
strategic route to enter the US market” on 28th
November 2005 at Hotel Le Royal Meridien, Chennai. The
seminar focused on acquisition of small and medium US
Companies ranging from $ 3 Million to $ 30 Million.
Korenberg Abramowitz Raj & Mathi (P) Ltd. was a
co-sponsor of this prestigious event that was well attended
by delegates representing various organizations as members
of the IACC, Chennai.
The programme commenced at 9.45 a.m. with the welcome
address delivered by Dr. Sankaran P Ragunathan, Chairman,
IACC, Tamil Nadu, followed by the Special Address by
Mr. Chella K Srinivasan, Regional President, IACC, South
India Council and the Seminar Theme by Mr. Anand, Vice-Chairman,
IACC, Tamil Nadu. Moving towards the core subject matter
of the seminar, Hans-Michael Kraus, a distinguished
US Attorney elaborated effectively on various issues
involved in acquiring US corporations by Indian Companies.
His deliberation on Corporate Acquisitions related to
the technical, financial and legal aspects of due diligence,
Purchase agreements and Seller warranties. He further
identified 10 major sectors as crisis areas of Due diligence.
On Purchase agreements, he dealt with share and asset
deal, purchase price, financing and payment terms. Amidst
his enthralling presentation, Michael Kraus also responded
expediently to the spontaneous queries raised by the
audience.
After a brainstorming session from Attorney Michael
Kraus, Mr. Robert King, Political & Economic Officer,
American Consulate, Chennai handled the session until
lunch break. He expressed his views on the significance
of the social and cultural aspects, which has to be
taken into account before making foreign investments
in the US. He strongly insisted that the Indian companies
interested to establish their own corporation or acquire
US companies must study and understand thoroughly the
impact of the social and cultural features peculiar
to the US. He firmly asserted that comprehending the
social and cultural factors would facilitate the Indian
companies to thrive well and have a long-standing business
in the United States.
Eminent speakers from diversified sections of the Indian
industry swayed the afternoon session of the seminar.
Mr. R. Venkatesh, Vice President, Ernst & Young,
Chennai spoke on the various methods adopted to acquire
foreign companies, pros and cons involved in acquisitions
and the role played by financial advisors in India while
acquiring US companies. He further stressed the need
of advisors to make a corporate acquisition successful.
Mr. G. K. Murali Krishna, Managing Director, Helios
& Matheson IT Ltd, Chennai made an exhaustive presentation
on acquiring IT and ITES companies in the US. He explained
coherently the personal experiences of Helios &
Matheson, while they involved in the acquisition of
US companies. He also pointed out certain precautions
before acquiring overseas companies and the intricacies
involved in the process.
Mr. G.N. Sivaramakrishna, General Manager – Sales,
Cybernet Software Systems P Ltd, Chennai elucidated
his views on the rising trend of M&A activity in
the Indian IT segment. Based on the statistics, he strongly
believed that many Indian IT companies have carried
out acquisitions and mergers to gain new customers,
to recompense the need for skill set enhancement, to
expand their reach in international markets and to spread
across different geographies. Speaking further on the
future of acquisitions by Indian IT companies, he anticipated
a tremendous increase in the number of mergers and acquisitions
by Indian IT companies in the near future due to competition
ushered in by the influx of MNC IT companies.
The splendid event came to a ceremonial end by 4.30
p.m. with a Vote of Thanks by Mr. Hiren Shah, Vice Chairman,
IACC, Tamil Nadu. KARM (P) Ltd feels privileged for
having extended its warm support to this excellent seminar
that was highly impressive, informative and illustrative
for one and all who participated in the program.
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| Our prestigious banner displayed in the function
hall of the IACC meet at Le Royal
Meridien, Chennai |
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Our Director, Mrs. Raji Govindaraj
and Office Manager, Ms. Hasha among
other participants keenly observing the speaker
at the meet |
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| A section of the delegates from various corporate
establishments at the IACC meet. |
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Our Director, Mrs. Raji Govindaraj
presenting a memento to Mr. G.N. Sivaramakrishna,
GM – Sales, Cybernet Software Systems P Ltd,
Chennai. Also seen in the picture is Mr.
Hiren Shah, Vice Chairman, IACC, Tamil
Nadu |
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