A STUDY OF THE VARIOUS DIMENSIONS IN THE AREA OF MERGERS AND ACQUISITIONS

The mergers and acquisitions (M&As) have evolved as most used and successful strategy of corporate restructuring. In last 20 years, India has registered increase both in terms of value of deals and number of deals. An applied research is being initiated in this area with the help of descriptive study to make an extensive review of literature in order to enhance present level of understanding in the mentioned area, present the current scenario of merger and acquisition (M&A) activity in India, gain an insight into the success or failure of M&As and explore the future research scope. The increase in average deal value further provides positive indication for 2012. Year 2012 is also showing significance as there is shift sector epicentre of the M&A activities. Both inbound and outbound cross border are taking places with multiple countries across different continents. This paper reviews different researchers' studies on various dimensions of M&A like: long-term performance of the firms after such deals with the help of ratio analysis, profit structure, liquidity structure by comparing pre-merger and post-merger related data; Short-term performance of M&A deals has been studied with the help of share price movement of the firms involved in such deals by calculating abnormal returns by using market model of event study; and Human resource issues has also been raised of the merged entity to deal with specially senior level management by considering HR as vital asset for the business firms.