A Study of the Impact of Merger and Acquisition on Financial Performance of Indian Companies

Abstract

The objective of this research to determine the effects of mergers and acquisitions on the financial performance of Indian acquiring company. Over the years, mergers and acquisitions have been the most widely used strategy for inorganic business expansion. It is frequently used to restructure companies. Companies engage in mergers and acquisitions for strategic business reasons, which are mostly financial in nature. This study makes an effort to assess the effects of the acquiring company's financial performance pre and post the acquisition. The performance of the companies was compared before and after the merger to see if there was any impact on their financial performance. This was done using a descriptive research approach. The acquirer company in selected M & A deals in India in periods 2016-2017 (As there is impact of Covid-19 in 2020) using select financial ratios and paired t test at 5% significance.