IMPACT OF CROSS-BORDER ACQUISITION ON FINANCIAL PERFORMANCE AND STRATEGIC OUTCOME OF ACQUIRING COMPANIES: CASE EXAMPLES FROM INDIAN PHARMACEUTICAL INDUSTRY

Cross-border and domestic merger and acquisitions are considered as fastest means of growth and survival too. This study provides evidence on the value creation by applying inorganic growth strategies based on a sample of Indian pharmaceutical companies. Relying on the key financial ratios, their pre-merger and post-merger financial performances were compared to find whether merger has affected their performance. Based on these multiple financial ratios it has been noted that there was no improvement found in the profitability after merger. The main motives of the mergers and acquisitions like cost reduction, risk spreading etc were compared to the financial results which indicates that the overall motives more or less were achieved by the companies keeping internal factors of acquiring companies constant.