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Higher Valuation

If they don't sell the company today, as the competition in the future increases, their valuation for the company will decrease drastically. In such circumstances, it becomes very prudent on part of promoters to sell it off for a higher valuation today.

Bargaining Power

The so called 'Not for Sale' company believes that either due to their strong influence in the industry or due to some other political factors, they are in the bargaining position with the government. They can possibly maneuver the government policies as per their requirements, so they don't have any fear from foreign competition coming in.

Why any company is sold is because of all these reasons. (Perhaps) One of the examples that can be quoted here with reference to the vision of the promoters is Evalueserve. Started in December 2000, Evalueserve is a full service business intelligence, market research and intellectual property service firm started by the alumni of IBM and McKinsey & Co. It has been profitable from last three years and they have received many offers from big corporates for acquisition. However, its leaders have the vision that they are not ready to sell their companies, as they are going to make it big in times to come.

In conclusion, point of concern remains that if all the young successful Indian companies are being sold to foreign players, will we ever see any Indian conglomerate, no Indian multinational giant serving the entire world.

So what's next?

Will Rediff be sold to Yahoo?
Will Pantaloons be sold to Wal-Mart?
Will Naukri be sold to Monster?
Will Café Coffee Day be sold to Starbucks?

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* Contributed by: -
Manvendra Singh & Nipun Jain,
Class of 2006,
Amity Business School, Noida.