"looking at assets which has stable leadership"

Amir Hossain | January, 2013

Gaurav Marya is a born entrepreneur. He started his first Business at the age of 16 and over the years has started and sold some 15 other businesses ranging from mobile phones, career advisory, restaurants to entertainment business etc. To chase his dream of franchising, he founded Franchise India in 1999.
 
What is more important for a company: organic growth or inorganic growth?
Both organic and inorganic growth options provide intrinsic value to an organisation in their own way. So,   the decision depends upon several factors like market and industry scenario and strategic vision of the business. However, organic growth is important many times as you can maximize your inorganically when when you know your organic potential. 
 
What are the major M&A activities that have taken place in Franchise India?
We have invested in few strategic franchise assests both international and Indian. Here are few examples. Francorp has been the unsurpassed leader of the Franchise Consulting Industry globally. It has been providing end to end franchise solutions to over 10,000 enterprises worldwide. In India Francorp has associated with Franchise India to combine an unmatchable experience of over 42 years with the franchise solution expertise of Franchise India. BrandFord which is recognized as world’s top most Brand licensing agency, has been operating since over 25 years. To operate in the Indian market, BrandFord has entered into the 50:50 percent of JV with Franchise India that holds over 15 years of experience in Franchise and Retail solutions.
 
What are the major factors you consider before finalising any M&A?
At this stage we are are keen on looking complementing assets which can value add to our mid market business community. But we are very keen to look at assets which has stable leadership.
 
How is M&A helping the company to reach its vision very effectively?
M&A reduces our time to reach a certain threshold, reduce learning curve, and also bring locked latent. For instance, Francorp India has consulted over 100 clients. Its esteemed clientele includes companies like BridgeStone, XEROX, Hall Mark Cards, Shell Oil, Mad Science Group, Polo Camperio, Ace Hardware, BP etc. In the same line, BradFord India has been acknowledged as India’s first complete licensing solution provider catering to over 40 brands like Delhi Dare Devils, Pepsi, 7Up, Kings XI Punjab, Oxford University, Harbhajan Singh, Polaroid, Beverly Hills Club, Toon Studio, Femina Miss India, Liverpool etc. Their key services include Licensee program advisory services include Licensee prospecting, Licensee management, Media services, Integrated supporting services.
 
What are the major resistances that you have faced during M&A?
An optimal valuation always becomes as the major resistance for any merger and acquisition deal. Sometimes, it becomes very difficult to get transparent information from both sides.
 
And how do you motivate all stakeholders for a specific M&A?
Its a known fact is that wealth creation for shareholders is the main objective of every CEO. So, you need to communicate your stakeholders that how the transaction is going to create value for everyone in bothe short and long term.
 
What kind of leader you are? 
I believe in idea, seeding the idea with patience and resource & bringing talent to maximize for the same.
 
What is your future plan?
We want to be biggest service company for MSME universe in the near future. 

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