A Study on Financial Performance Analysis of Selected Companies Pre & Post- Merger and Acquisition with Reference to India

Abstract

In the present era of global economy, Mergers and Acquisitions have become the most widely used business strategy of corporate restructuring and strengthening to achieve greater market share, long term profitability, entering new markets, capitalizing on economies of scale etc. The effects of M&A on various parameters have already been analysed by many that yielded mixed results. The present study investigates the effects of mergers and acquisitions on the financial performance of selected companies in India. It details about the net profit margin, return on assets, return on equity , Asset turnover ratio etc. in the post-merger period. Hence through a pre and post-merger analysis the minute differences in the working efficiency of companies can be studied. The statistical findings of the five companies  mergers & acquisitions present a very tricky and glowing picture of success and failure. The post-merger impact upon many companies above is a mixture of both positive and negative. The impact of post-merger on ONGC , Tech Mahindra and Cyient has been negative. This implies that while some have managed to synergize the merger and able to integrate respective companies with dynamic leadership and determinism, certain others had to face huge loss due to rising debt and other operational issues.