Impact of Merger and Acquisition on the Companies Involved: A Case Study of Musk-Twitter Acquisition

Abstract

There are many corporate actions as and when announced by the organisations. Out of these corporate actions, merger and acquisition announcement plays a very important role and it directly and indirectly affects the stakeholders in many ways. Companies may go for merger and acquisition for various reasons like growth, diversification and elimination of competition etc. The study focuses on highlighting the impact of merger and acquisition on the companies or parties involved. It also throws light on the impact of such corporate actions on the employees of the target company. Data used for the study is of secondary nature and have been collected from the respective websites of the companies involved in M&A and some other websites have also been used to collect the required data. Research methodology used is descriptive and case study approach has been used for the study. The study concludes that there are many structural changes in the companies involved in merger and acquisition. Some growth opportunities and challenges also are there for the acquirer after M&A and the management and employees of the target company may face some unfavourable changes.