a study on mergers and acquisitions in india
GALAXY International Interdisciplinary Research Journal______________________________ ISSN 2347-6915 GIIRJ, Vol.3 (5), MAY (2015), pp. 91-102 A STUDY ON MERGERS AND ACQUISITIONS IN INDIA RAYUDU GANGADHAR, L.L.M., M.B.A., (Ph.D)*; Dr. P.VIJAYA KUMAR, M.Com, Ph.D**; Dr. P.VENU GOPAL, MBA, Ph.D*** *RESEARCH SCHOLAR JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA, EAST GODAVARI DISTRICT, ANDHRA PRADESH, INDIA. **DIRECTOR & PROFESSOR, SCHOOL OF MANAGEMENT STUDIES, JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA, EAST GODAVARI DISTRICT, ANDHRA PRADESH, INDIA. ***PROFESSOR, VIT BUSINESS SCHOOL, VIT UNIVERSITY, VELLORE, TAMIL NADU, INDIA. ABSTRACT Mergers and acquisitions (abbreviated M&A) refer to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can aid, finance, or help an enterprise grow rapidly in its sector or location of origin or a new field or new location without creating a subsidiary, other child entity or using a joint venture. The distinction between a "merger" and an "acquisition" has become increasingly blurred in various respects (particularly in terms of the ultimate economic outcome), although it has not completely disappeared in all situations. Achieving acquisition success has proven to be very difficult, while various studies have shown that 50% of acquisitions were unsuccessful The acquisition process is very common, the. A study published in the July/August 2008 issue of the Journal of Business Strategy suggests that mergers and acquisitions destroy leadership continuity in target companies’ top management teams for at least a decade following a deal. The study found that target companies lose 21 percent of their executives each year for at least 10 years following an acquisition – more than double the turnover experienced in non-merged firms.[If the businesses of the acquired and acquiring companies overlap, then such turnover is to be expected; in other words, there can only be one CEO, CFO at a time. Mergers and acquisitions are undertaken by companies to achieve certain strategic and financial objectives. They involve the bringing together or two organizations with often disparate corporate personalities, cultures and value systems. Success of mergers may, therefore, depend on how well the organizations are integrated. companies making acquisitions and merging with other companies are unable to create value for their shareholders. Various market reforms initiated by the Government in the form of de-regulation have forced the Indian companies to acquire competitive edge for survival and further expansion. This paper studies the importance, implementations, failure factors of mergers and acquisitions in Indian companies and to suggest measures for their success. KEY WORDS: Shareholders, wealth maximisation, corporate strategy. GALAXY International Interdisciplinary Research Journal______________________________ ISSN 2347-6915 GIIRJ, Vol.3 (5), MAY (2015), pp. 91-102 REFERENES Mergers and Acquisitions - P. Sudarsanam, Chartered Secretary Jan-97, March-97, Business Today Nov-'96, June-'97. 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