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Performance Evaluation of M&A

  • Vinod Kumar
  • Priti Sharma
Chapter

Abstract

This chapter outlines various parameters used for evaluating the performance of an M&A deal. The calculation of profitability and valuation measures of combined entity in post-merger period vis-à-vis pre-merger period has been covered through numerical examples. It also puts forth the key findings of studies conducted on the success/failure of M&As all across USA and India along with Author’s individual study on the performance of M&A deals in India. The empirical work on performance evaluation of M&A indicates the mixed result. Some study shows that M&A results in improvement of performance while some other studies show that there is no significant impact of M&A on performance of combined entity.

Keywords

Performance evaluation Pre-merger Post-merger Profitability measures Empirical studies Earning per Share (EPS) 

Copyright information

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Vinod Kumar
    • 1
  • Priti Sharma
    • 2
  1. 1.SGND Khalsa CollegeUniversity of DelhiNew DelhiIndia
  2. 2.Institute of Management Technology, Centre for Distance LearningGhaziabadIndia

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