Authors:

Hiral Parikh, Lekha Nair

Abstract:

In theories it’s always stated that Merger and Acquisition is a strategic decision, a tacticadopted by the corporate world to survive in this competitive environment. By the way of merger and acquisition, the firms aims at long term benefits and to improve its competitive position, gain greater market share, diversification, synergy creation etc, thus on the basis of theories Mergers and Acquisitions always would be beneficial in long run but most of the past research work states the difference in pre and post merger performance is insignificant.Thus the present paper is aimed to analyze the impact of Acquiring WTI Advanced Technology Ltd. over the financial performance of Tata Consultancy Services. WTI Advanced Technology Ltd. was a subsidiary company of Tata Consultancy Services and the analysis regarding the impact over TCS performance was carried out using ratio analysis and Paired sample t test over a data set of 3 years pre and post merger. The results asserted that the merger failed to significantly improve the performance of merger on overall profitability, firm’s operating efficiency and return on capital invested. But with regards to shareholders profitability the improvement between pre and post merger performance was statistically proven.

Keywords:

Mergers and Acquisitions, Strategic Decision, Paired sample t Test and Financial Ratios.

Vol & Issue:

VOL.14, ISSUE No.Special Issue 1, january 2022