Enhancing Enterprise Value and Competitiveness

Submitted By: Shipra Srivastava (Lecturer) Meerut Institute of Engineering & Technology, Meerut Address: 8/966, Adarsh Nagar, Modinagar. Phone No: 9760244309/ 9718122101 Email Id: 20apr1@gmail.com, pari2299@gmail.com

Enhancing Enterprise Value and Competitiveness Through Merger And Acquisition. Abstract:
As the world is changing, so as our business scenario and it s values are changing accordingly. There is so much of competition and roughness in market and to survive, we have to follow the strategies. Merger & Acquisition is one among the various strategies been followed in corporates. In todays globalised economy, mergers and acquisitions (M&A) are being increasingly used the world over, for improving competitiveness of companies through gaining greater market share, broadening the portfolio to reduce business risk, for entering new markets and geographies, and capitalizing on economies of scale etc. The impact of mergers on the operating performance of acquiring corporates in different industries, by examining some premerger and post-merger financial ratios, with the sample of firms chosen as all mergers involving public limited and traded companies in India between 1991 and 2003. The results suggest that there are minor variations in terms of impact on operating performance following mergers, in different industries in India. M&As have played an important role in the transformation of the industrial sector of India since the Second World War period. The economic and political conditions during the Second World War and postwar periods (including several years after independence) gave rise to a spate of M&As Large number of M&As occurred in industries like jute, cotton textiles, sugar, insurance, banking, electricity and tea plantation. The Indian IT and ITES sectors have already proved their potential in the global market. The other Indian sectors are also following the same trend. The increased participation of the Indian companies in the global corporate sector has further facilitated the merger and acquisition activities in India.