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Growing Investment Interest in Indian Education Sector

Education is considered the most crucial and the vital key for modernisation and development. The importance of education can be evaluated from the fact that every advanced society and culture is promoting universalisation of education as a parameter for long term economic development. There is a huge demand for advancement and modernisation of education system in India, as the country is estimated to have an excess of 47 million resources in the working age group by 2020. As per the prediction of the consumption trends urban India is investing 9% of earning on education whereas the rural consumer is limited to 6%.

Ecosystem of Education in India
Of late education sector in India has witnessed a chain of changes, resulting in a significant rise in the market share of the education sector. With economic development and evolving technology, Indian education sector has reasons to celebrate. The Government of India has also initiated many plans to attract investments from non-resident Indians for the development of education infrastructure.

Key Drivers of Indian Education Sector
Demographic Fact
As per Census 2011, there are 35.3% Indian population is below the age bracket of 14.

Catapulting Awareness
Increasing awareness towards education has become an essential cause for career growth.
Growing job opportunities and attractive salaries offered is making investment in Indian education a wise decision.

Skilled Workforce Demand
Demand for an skilled workforce is at all time high in services sector

Technology Penetration
Increase in evolution of technology leads to virtual learning and advance education delivery

New Employment Opportunities
Fresh employment avenues like KPO, LPO, retail, animation, aviation, corporate etc. demands highly skilled manpower


Investment Opportunities Leads to Growing Investment Interest

Nowadays education sector in India is one of the hottest sector attracting big players to invest in this industry. The entire education system is reeling under a renovation process, as per PricewaterhouseCoopers (PwC).

As per a study by DTZ, the Indian higher education segment requires 5,550 million sq. ft of additional educational space to address the 30% Gross Enrolment Ratio (GER) in higher education target by Government of India by 2020.

Entry of foreign universities has intensified the competition and will also provide a global platform to the Indian students to acquire quality learning.

Due to tight finance the share of government schools in India appears to be declining, which leads to growing interest amongst private sector, public sector and corporate entities to enter the K-12 education space, given the huge target market and potential profit.

Robust Growth
The shooting income brackets, rapid urbanisation, and increasing awareness about the significance of quality education have led to the robust growth of the Indian educational industry and business opportunities for private equity firms.

Private sectors are the leading players in setting up educational institutes, especially in the K-12 and higher education verticals, a higher degree of specialisation in course content equipped with increasing variety of courses offered and higher fees is expected to accelerate the growth in the higher education segment.

Investments Stats
In the year 2007 MT Educare, an education collaboration offering classroom tutorial and coaching for CAT tests, received equity funds of $ 40 million.

In yet another case Excelsoft, a Mysore based company delivering products and services in the e-learning arena, received UTI venture by selling 35.5% stake of the company in the year 2002 with a whopping return of 50x return in the year 2008 and then sold the stake to DE Shaw same year.

This shows the successful investment by big players and the opportunities that still exists.

Synopsis
As per the estimation the unprecedented growth in preschool segment is trigger by increased interest of organized and big players. These players have ample resources and are entering the organised space to establish their brands and the existing ones are utilising the name of established brands via franchisee model, driving faster returns in the form of royalty!

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Expanding Horizons for Business Buyers and Sellers in India

July 7th 2015 Ahmedabad, India – It is great news for all the entrepreneurs and aspiring entrepreneurs in India, India’s largest online platform, indiabizforsale.com, which is helping businesses get bought and sold, has decided to give its customers a better and wider reach and hence has empanelled with another web portal clickindia.com, which is a well-known online classified ad portal, for listing their prospective sellers from today.

Indiabizforsale.com and clickindia.com have decided to ensure that all the business for sale listings available on indiabizforsale.com would also be now available on clickindia.com for the potential buyers to explore. Having said that, the companies have also decided that only a broad description of the listings would be posted and no information regarding the identity of the seller or the company would be disclosed on either clickindia.com or indiabizforsale.com giving them the much deserved privacy and confidentiality.

Furthermore, the potential buyers would be able to contact the sellers only through indiabizforsale.com and a link directing them to the parent site would be available on each ad posted on clickindia.com.

Clickindia.com is a local marketplace to buy, sell, rent or find anything in the neighbourhood. More than 4 million users trade on clickindia every month for fulfillment of their daily needs. The platform is present in 40 major cities in India and is live with 20 lakhs advertisement.

Pankaj Agarwal, Founder & CEO said, “Our aim is to make one connected neighbourhood and offer a plethora of services to our users. Through this partnership, we aim to promote entrepreneurship and now, people can search for business on sale in and around their cities.”

Indiabizforsale.com is India’s largest online platform that is engaged in helping people buy and sell businesses across India. It started in 2013 and within a span of less than 3 years boasts of more than 4500 registered users which includes business buyers, sellers and brokers, advisory firms, boutique investment banks, private equity professionals and banks. Currently there are nearly 500 small to medium size business acquisition opportunities available on the portal. The platform also provides match making visibility for businesses get the much required funding for various purposes. Recently the company also decided to include start-ups in their listings and provide them with equal opportunities as their other listings. There are business opportunities from the manufacturing sector, IT companies, healthcare and pharmaceuticals, education and social casue companies, petrolium and energy opportunities, retail and wholesale trading businesses and also large commodity businesses are available through the platform. IndiaBizForSale.com get around 85% visitors from India and rest from US, China, Australia, UK, Germany, Middle East and more than 100 other countries.

The company was co-founded by Bhavin Bhagat and Haripriya Bhagat and till date they are successfully running their venture. The team can be contacted on www.indiabizforsale.com or +91-80004-22133

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Entry in India through Business Opportunities in India

Invest in India is the mantra for lot of multinationals since India’s GDP size to cross $3 trillion in five years in 2019. This year India is set to become a $2 trillion economy. Currently India is the tenth largest economy in the world. Improving GDP will make India seventh largest economy in 2019 as per IMF’s latest world economic outlook.

A sharp increase in M&A activity in India since the new government assumed office in May 2014. 19% increase in value and 12% in volume over 2013, it is a positive trend this year, the activity of M&A has jumped 16.5%. As per a recent study by Thomson Reuters, the value of announced M&A deals involving India businesses reached $26.1 billion during the same period.

At $11.1 billion, domestic M&A was up 206.6% over a year ago and average deal size (disclosed values) of $75.2 million vs. last year $63.1 million. Healthcare sector has seen the massive M&A activities with total value of $6.1 billion (23.4% share of M&A).

A Grant Thornton study indicates energy and natural resources sector has been active this year with 25 deals aggregating $4.1 billion so far. Though IT and ITES companies continue to top the charts both in M&A and PE space.

Competition Commission of India suggested recently that fair trade regulator has seen steady increase in receiving an average of 10 notices a month since May 2014 for seeking approval for M&A deals vs. average 2 notices in 2013.  The informal guidance requests by law firms and companies have also increased reflecting the confidence in economy and future growth in India.

Technology sector is showing sharp increase in M&A league tables, reflecting a strong focus on services and solutions around Healthcare, IT, Pharmaceuticals, Medical, Biotech and Consumer industries.

The global businesses are trying to increase their share in India market. This is just a beginning as growth picks; interest rates will go down and more tax clarity will only help to further fuel this kind of activities.

There is a lot of interest from medium sized global companies to enter into India while acquiring/ share of local companies. Domestic big companies are also using the market sentiment to further grow their shares of the market via acquiring right fit companies and also diversifying.

In August, the government announced relaxation in foreign direct investment (FDI) norms in many sectors including multi-brand retail and telecom. There is inherent macro-economic pressure and heavy debt pile for some large domestic companies and which are looking to divest non-core businesses. This has created a large opportunity for global companies vying for a greater role in Indian market.

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Reminisce 2014

2014 has been the year where we found our start up journey all about perseverance and passion. There have been days where we felt at the top of the world and there were days where nothing seemed to work. We faced issues with hiring, website development, hosting server and many other petty office issues like the Internet connectivity, telephone, water supply, etc :)

But, eventually “going” got only better with the wonderful team, website development and the amazing network. We especially enjoyed the attention from the users of IndiaBizForSale.com. We have been receiving loads of praise and positive feedback from across the country and abroad. The testimonials we received from our clients who successfully sold (although few decided not going forward selling their business after receiving offers) and many who have managed to come across serious inquiries which otherwise would not have come. We believe in the cycle of doing good with good intent and this year has proved our belief.We have received remarkable support from CIIE, eChai, MICA, CII, GCCI, Economic Times, DNA, Divya Bhaskar, VCCircle, Money Control, Microsoft Azure, various business Bloggers, etc.

This year we had presented our business concept at IIM Ahmedabad, Gardi Engineering college – Rajkot, Venture studio Ahmedabad, MICA incubator, IDEAPAD at CIIE. We exhibited at Gujarat Manufacturing Show 2014, Rajkot Big Show 2014, E-tailing Conclave 2014 Ahmedabad and now gearing up to exhibit at the big summit Vibrant Gujarat 2015. We also attended events and workshop held by IIM Ahmedabad, VCCircle, LetsVenture, visited offices of Snapdeal, Infibeam, TOI, DNA, MoneyControl, IL&FS, Everstone, etc. The learning has been continuous and so has been the support from professionals and companies we interacted with.

Not only we received number of requests and offers from companies and individuals to get associated with IndiaBizForSale.com but had two initial offers on investment into our business.

Apart from our users who want to Exit from the business or Enter into business, we learned that the services we provide possess lot of value for mid-size companies abroad who are looking to enter into India market via acquisition/JV. We learnt that financial institutions (NBFCs, Banks), chartered accountants, business advisory firms, event management companies are also interested in partnering with us for financial needs of users of IndiaBizForSale.com. We have now worked on the delivery model for these interests, which will open different revenue streams for the company apart from our nominal listing charges for our Premium clients.

We are upbeat about 2015 – surely we will advance further in our journey, as we have confidence and support from the market along with the right team in place. We have a right product mix and we believe the timing is perfectly right. And above allour perseverance and our continual passion will flourish the business in 2015, this year is ours to make.

We thank you for believing in us, stay the same awesome you have been always !

Always Wishing Best,
Bhavin Bhagat & Priya Bhagat

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Are You Really Ready to Buy a Business?

Buying an existing business is becoming a practical choice for seasoned professionals who prefer not to start from scratch. These professionals generally would have worked at various positions in medium to large organizations for most of their working professional life and now they are looking to start something of their own.

These professionals understand the time and resources it takes to build a business from scratch, instead they prefer spending time and resources to further build the business they have acquired. Generally, these middle-aged professionals (mostly) who have years of experiences and the skills they have garnered, either have some sizeable funds of their own and/or have access to funds via their network to finance the purchase of an existing business.

IndiaBizForSale.com receives good number of inquiries from such professionals on a regular basis. We aim to qualify interests from these interested buyers by asking series of detailed questions. These include; their past experiences in a similar industry, profile background – qualifications, their future plans (reasons on why they want to buy a business), preferred industry and location, what is the ideal investment budget, whether the purchase will be self-funded or external finance, etc. After careful evaluation we help them with their search to reach out to a relevant genuine business opportunity for sale.

We also help the interested buyer to communicate with the seller, assist them with signing of NDA, the top line Business Valuation, and as and when required, arrange a site visit for buyer and seller to meet directly. This interaction requires a serious amount of time and resources from our end to ensure that we only bring Genuine Seller and Serious Buyer on our platform to meet each other. Our secured messaging system enables communication between interested prospects with the business seller without revealing the business or the seller identity (unless preferred by the business owner).

Our seasoned professionals generally have an investment budget in the range of Rs.50 Lakhs – Rs.10 Crores to acquire a running business for sale. Generally, these are either self-funded or have a network of HNIs who would fund this business investment.

No doubt, the opportunity cost for these professionals is higher but at the same time with the amount of experiences, skills and contacts one has all the right to become his/her own BOSS.

Click here to check out some of our latest businesses for sale.

If you are planning to invest into an existing business, Call us NOW on +91-8000422133 or connect with us through website – http://www.indiabizforsale.com. We promise unbiased advice for your interest and concerns.

Always Happy to Help!!!

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How To Know A Prospective Buyer Is Serious to Buy Your Business?

Selling a Business is a serious business, as a reason it is of utmost important to understand how serious the prospective buyer is when inquiring into a business opportunity for sale.

So, how does a seller find out if a buyer is serious or a time-waster?

Buyer

A Serious Buyer will- 

tickmarkKnow what he/she wants

A serious Buyer will know the type of business he/she wants to acquire. First off, it should match their skills and experience. The buyer will also have some realistic expectations on the location, the investment budget and the size of the company he/ she is looking to invest into.

tickmarkNot waste time

A serious Buyer targets businesses, does research on the business, and is ready to make contact, set up appointments and visit these companies. They meet with potential financial partners. They discuss with the seller or broker important considerations. They focus on businesses that are suitable for their background.

tickmarkBe “Transparent” to the seller

A serious Buyer is always ready to disclose his/ her identity (profile and background) to the seller. The buyer needs to reveal his interests and the reasons why he/ she wants to get into this business. The buyer should emphasize his/her understanding of the industry and  the qualification they have to operate a similar business. This will build an initial trust as the transaction proceeds to advanced stages.

tickmarkHave resources available to buy a business

A serious Buyer will have sorted the financing to fund the purchase of the business. A ready proof such as an income statement, banking references, and borrowing capacity should be in place. A serious Buyer will have a substantial amount to pay for the down payment and should disclose the plan on how will the deal be financed. Funds from investors or partners should be formally committed.

tickmarkBe ready to sign a non-disclosure or confidentiality agreement.

Signing an NDA speeds up the process as the buyer can get the information required to make a decision about buying the business. And gives the seller the trust and confidence that the information shared will not be leaked out.

For a Buyer, who wants to be taken seriously, be prepared before beginning the search for businesses for sale. Business brokers and sellers can easily spot whether you are a “time waster” or a “serious buyer”.

For a Seller, asking some basic questions to qualify a buyer is important – at times this can be a provocative issue as some buyers get offended that they are being pre-screening but this process ensures that you are dealing with a qualified inquiry and a serious buyer. Serious buyers will appreciate this approach by seller though.

My two cents – continue running your business and don’t get obsessed with couple of enquiries even if they are at advanced stage. One thing you don’t want is to lose focus on your business and the business starts to run down.

So, stay focused on running your business till the deal is closed and keep your options till you get the money in the bank.

Post Source : http://www.indiabizforsale.com/blog

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Positive Sentiments in M&A Activity in India Sets New Trend

Largest global corporate that includes Indian tycoons are expected to exhibit huge appetite for M&A transactions in the year 2014 compare to last year, as per the KPMG International latest Global M&A Predictor. Isn’t it encouraging?

In addition to boosting confidence, global analysts are also predicting corporates to manifest improved potential to undertake transactions in this year than last year.

The Indian M&A activity has begun to witness more traction and improved interest in the later quarter and expect it to continue at the end of 2014 also, making it a much better year.

Recent M&A Activities in Indian Economy

There are several fresh examples of recent M&A activities in Indian economy! For instance:

Myntra Mergers in Flipkart
Flipkart MyntraFlipkart, India’s biggest online apparel retailer, is going to own competitor Myntra.com, to gain a business with greater margins and to stimulate competitiveness against Amazon.com Inc.

Myntra, India’s biggest apparel e-store, valued about $330 million, and its shareholders will receive a cash payouts and stakes in Flipkart, as per reliable resources. A formal announcement is expected within a week as per the resources.

Acquisition of Myntra will provide Flipkart with added customers and help challenge Amazon, which has also become a tycoon by acquiring several rivals, which also includes the $1.2 billion deal of shoe retailer Zappos.com in 2009.

Vodacom Acquires Neotel

Yet another example of improved appetite of Indian Merger and Acquisition is the deal that has been struck between Vodafone’s South African Associate Vodacom and Neotel, managed by Tata Communications. As per this deal Vodacom will take over Neotel at a whopping 7 billion rand (nearly $676 million) price.

It has been announced mutually by the shareholders of both the companies that they have reached an agreement on the commercial architecture and terms and conditions to proceed for this M&A to acquire 100% of the shares of Neotel, which worth ZAR 7.0 billion, nearly Rs 3,950 crores!

Asian Paints Will Acquire Ess Ess Bathroom Products Pvt Ltd

In the same line Asian Paints Limited will acquire Ess Ess Bathroom Products Private Limited’s front-end business!

Albeit, the acquisition would be driven by satisfaction of certain conditions and other applied statutory approvals, the merger and acquisition has started to gain momentum in Indian market with an aim to maintain the capital flow.

Scenario in 2013

The year 2013 had witnessed the bottom out of M&A activity in India. The domestic economy was moving at a snail pace, with high interest rate environment, lack of any development on much required financial policy reforms and a volatile Indian rupee led to a depressed M&A sentiment.

Indian investors have been patient and reluctant in the last few years, but with the sharp increase in deal capacity and given the global markets stability in certain aspects, the pressure on cash-rich corporates to begin making deal has shot to new popularity graph.

Synopsis

The Indian economy has been manifesting new signs of reaching the lowest levels in terms of growth in the year 2013 but with catapulting stability in the global marketplace it will drive up M&A sentiments and add value to its mainstream economy.