International Journal of Business Economics and Management Research
  • Year: 2011
  • Volume: 2
  • Issue: 3

Mergers and acquisitions- “a change paradigm in performance of Indian company”

  • Author:
  • Natika Jain, Sulbha Raorane
  • Total Page Count: 17
  • Page Number: 35 to 51

St. Francis Institute of Management and Research Borivili (w) Mumbai-400103

*E-mail: natika@rediffmail.com

**E-mail: sulsan06@yahoo.co.in

Online published on 17 March, 2012.

Abstract

This paper is an attempt to evaluate the impact of Mergers on the performance of the companies. 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 entering new markets and geographies, and capitalising on economies of scale etc. The results suggest that there are minor variations in terms of impact on operating performance following mergers, in different industries in India. Theoretically it is assumed that Mergers improves the performance of the company due to Increased market power, Synergy impact and various other qualitative and quantitative factors. Although the various studies done in the past showed totally opposite results.

Keywords

Mergers, Amalgamation, Acquisition, Operational synergy, Return on Net worth, Return on Capital Employed, Debt-equity Ratio, Financial Synergy, Current Ratio, Quick Ratio