A study on effect of mergers and acquisitions on profitability of firm and shareholders wealth

Abstract

We can see that from the history that for the survival every king has to strengthen his powers and to expand his empire they have to either win the other state in war or they followed the strategy of sending marriage proposals to king s of other state to expand their empire. These strategies in the modern world are known as consolidations .These consolidation activities are bifurcated into mergers, acquisitions, strategic alliance and joint venture. newlineIf any company wants to survive in business so they have to either develop their strength or by the time have to upgrade himself to fight with the prevailing competition in the market otherwise they have to bear continuous loss which may result in sale of the business. newlineThese selling and buying of business is known as mergers and amalgamations. These consolidations activities have different synergies due to which the companies consolidates on the basis of synergies these mergers and acquisitions can categorized as vertical and horizontal and conglomerate mergers. In this work I had tried to identify whether these mergers and acquisitions play a significant role in the development of the company because after mergers and acquisitions also some of the companies not able to survive. newlineI had tried to evaluate the effect of mergers and acquisitions on the profitability of the company and the wealth of the shareholders to check it I had gone through the literature review and traced out that similar sort of work is done by many researchers but the method of evaluation and use of tools, context and selection of the companies differentiated my work. newlineIt is a combination of purposeful work with some effective outcomes to be taken into consideration for future. newline newline