Corporate Mergers and Acquisitions

Contents: Preface. 1. Introduction. 2. Legal and regulatory framework for mergers and acquisitions. 3. Studies on mergers and acquisitions. 4. Economic Value Added (EVA). 5. Empirical analysis : post-merger performance analysis. 6. Motives of mergers : theoretical pinnings. 7. Empirical analysis : comparative pre-and post-merger motives analysis. 8. Conclusions and suggestions. Annexures. Select bibliography. Index.

"In recent years, the concept of mergers and acquisitions has gained momentum in India, both in terms of number and volume. They are effective routes to enhance corporate efficiency and shareholder wealth.

Mergers are crucial financial decisions involving huge investments; acquiring a business is much more strategic decision than acquiring an asset. Merger motivations, post-merger financial performance and achievements of the avulsive process are subjects of continuing research. Many researchers in U.K. and U.S.A. have looked into various aspects of mergers. But empirical research in the field of corporate mergers is very scanty in India.

This book has its relevance in deducing the merger motivations which help in framing merger strategies, and their subsequent effect on financial performance of companies, especially in terms of shareholders value addition. The study is divided into eight chapters including the first chapter which is introductory. It covers the conceptual framework of mergers and acquisitions. The complete legal regime governing these activities is traced in chapter 2. Chapter 3 presents comprehensive survey of the existing literature on the subject. While Chapter 4 traces the historical evolution and also the conceptual methodology of the new corporate performance metrics EVA and MVA, chapter 5 empirically examines the post merger financial performance of the companies using these metrics. Chapter 6 discusses the various possible motives of mergers as advanced in research literature identified with the help of real life case studies. Chapter 7 presents the empirical results of the detailed pre and post merger analysis followed by summary and conclusions in chapter 8. Besides these eight chapters, some informatory appendices and select bibliography of relevant literature is also included." (jacket)