*Assistant Professor, Department of Commerce, Gargi College, South Campus, University of Delhi, New Delhi, India
**Lecturer, Department of Commerce, R.K.S.D. (P.G.) College, Kurukshetra University, Kaithal, Haryana, India
Online published on 4 September, 2013.
In today's globalised economy, mergers and acquisitions (M&A) are being increasingly used the world over, for improving competitiveness of companies through gaining greater market share, broadening the portfolio to reduce business risk, for enteringnew markets and geographies, and capitalizing on economies of scale etc. This researchstudy was aimed to study the impact of mergers on the operating performance of acquiring corporate in different industries, by examining some pre- merger and post-merger financial ratios, with the sample of firms chosen as all mergers involving public limited andtraded companies in India between 1991 and 2003. The results suggest that there are minorvariations in terms of impact on operating performance following mergers, in different industries in India. In 50% cases there is a favorable impact on the operating performance of the company after merger. But In case of maximum companies the gross profit margin, net profit margin and financial charges coverage ratio went down whereas the debt to equity ratio went up in case of maximum companies after merger.Thus we see that Mergers have not exactly lived up to the hype and expectations around them
Corporate Performance, Mergers and Acquisitions, Merger Performance, Post-Acquisition Performance, Ratios, Business Synergies, Value, Valuation
