| Author | Sharma, Omprakash |
| Call Number | AIT RSPR no. SM-96-81 |
| Subject(s) | Consolidation and merger of corporations--India
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| Note | A research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration. |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-96-81 |
| Abstract | Mergers and Acquisitions have become a useful financial and strategic technique in building a new generation of companies with the power and resources to compete in the rapidly growing business climate. The benefits of mergers may come in the form of economies of scale through efficient production, increased market share, reduced competition and better use of resources. The increased efficiency and profitability as a result of M&A can lead to value creation for the combined firm. Discovering these advantages, business groups in India have begun merging companies furiously. The recent liberalisation of the Indian economy as well as the regulatory reforms have led to an increase in the pace of corporate mergers and acquisitions. Specifically, the economic reforms in India have exposed many small and medium sized companies to the possibility of a takeover by a foreign company. This study covers the development of M&As in the developed and the developing countries, especially in Asia and in particular India. The study of M&A practices in India is made through the questionnaire survey, two case studies and case research of selected comparues. The purpose of the case research was to understand the strategic motives and economic forces that lead to M&A in India. The two case studies were used to analyse the performance of merging companies before and after merger in terms of strategic gains and cost arising from their merger. The case studies also helped to understand the application of valuation models, financing ofM&A, conflict resolutions, and the legal framework in India. The objective of the questionnaire survey was to understand the M&A practices in India in terms of motives and benefits sought by companies through mergers. It also helped to seek their recommendations for the development ofM&A in India. Finally, the findings of this research resulted in conclusions in terms of strategic reasons for merger of companies in India. The research study also led to recommendations for the players involved in M&A in India and future development of a formal M&A market in India. A major lesson of the study is that, when the new takeover code becomes a law, it will provide more protection to the investors and will encourage M&A in India. |
| Year | 1996 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-96-81 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Pandey, I. M. |
| Examination Committee(s) | Gupta, J. P.;Swierczek, Fredrick |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1996 |