Analysis of Mergers and Acquisitions - A Review

Mergers and Acquisitions (M&As) are amongst the most widely used strategies of corporate restructuring. History of mergers waves in developed countries like US, UK and Germany highlights mergers and acquisitions as commonly prevalent activities among the firms even during the rise of industrial revolution. Economic reforms in India brought about widespread changes in the corporate sector, the expansion of which led to manifold increase in mergers and acquisitions activity in India. With changing government regulations and the increasing complexity of the market, a rise in both in-country and cross-border M&As have been witnessed in India. The current study therefore brings forth a unique approach to review the research work previously under taken by various authors, to analyze the motives and effects of M&As on the performance of the firms giving special reference to the economic impact of these activities. The review also emphasizes on the rationale behind M&As and studies the micro-economic impact of M&As with special reference to variables like size, growth, profitability and concentration of firms. Later the paper attempts to draw gaps in the current literature and also emphasizes on more research in the field of M&As with respect to micro-economic aspects of the firms. The paper also attempts to give an insight of M&As in Indian context and some valuable recommendations in this regard