Mergers and acquisitions’s impact on financial performance: an evaluation with perspective of time

Abstract

Mergers and Acquisitions (M&A) is the most prefered technique of the corpoates from diversed areas across the globe for achieiving inorganic growth. In Indian context, M&A has a graceful history from pre liberalization to post librelization period wherein the companies have used this process in different scenarios to accomplish various objectives. Though this method have enormous benefits but at the same time are firms are able to convert these qualitative aspects into quantitative form and if yes than do they see an immediate impact or it takes considerable time to reflect same in their financial performance. The present research work with the help of Du Pont Return on Assets (ROA) framework assess the success of M&A in the long run by taking a sample of 24 companies that have acquired companies in financial year 2005- 2006.

Keywords: mergers and acquisitions; du pont analysis; long run; financial performance; return on assets