Impact of Mergers and Acquisitions Across Industries in India

Mergers and Acquisitions continue to enjoy importance as strategies for achieving growth. In today’s globalized economy, mergers and acquisitions (M&As) are being increasingly used in 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 capitalizing on economies of scale etc. The aim of this paper is to study the impact of mergers and acquisitions on the financial performance of the acquiring firm during the pre-and post-merger period specifically in the areas of profitability, leverage, liquidity and managerial efficiency of the company. Paired sample t-test has been performed to determine the significance difference in the financial performance of the acquiring firm. The finding of this study shows that there is no improvement in the financial performance of the firm due to acquisitions.