A STUDY ON IMPACT OF MERGER AND ACQUISITION ON THE FINANCIAL PERFORMANCE OF THE COMPANY WITH RESPECT TO PHARMACEUTICAL INDUSTRY

Abstract

Mergers and Acquisitions (M&A) are considered as a significant tool for corporate restructuring and value creation in the present scenario. It enables the firms to expand their horizons, reducing the business risks, exploring new markets and geographical areas thereby increasing the profits and gaining through competitive advantage. The present study aims at assessing the profitability position of Pharmaceutical Industry in India. Ratio analysis techniques have been used to analysis and interpret general financial statements to assess the financial position. Secondary sources have been used for collection of various financial ratios for three years pre and three years’ post-merger and acquisition of the sample companies. Findings of the study reveal that, there has a positive impact of merger and acquisition in pre-merger compared to post- merger and acquisition in terms of selected profitability variables. Pharmaceutical companies should have an effective management especially for controlling all the financial affairs and internal analysis.