Effects of Mergers & Acquisitions on Corporate Performance

- U. T. Rao, Mudra Institute of Communications

Abstract:

Dramatic events in mergers, takeovers, restructuring, and corporate control fill the newspaper headlines almost daily. Mergers and acquisitions have become central public and corporate policy issues. M&As, restructuring and corporate control activities represent a new industrial force that will lead the India and other economies that practice these arts to new heights of creativity and productivity. In order of nursing corporate health and growth pattern of developing and developed countries especially eradicating sickness in industries, the concept of Mergers and Acquisitions is very popular in the current economic scenario. Moreso, it is significantly popular concept after 1990s in India on the birth of economic liberalization and globalization.

This paper provides insights on various aspects of Mergers & Acquisitions like prospective gains to target and acquired company, enhancing the shareholders value or wealth, financial benefits to the shareholders and benefits to other stakeholders of the companies.

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