Mergers and acquisitions: Historical trends and present drives, effects on shareholders’ wealth, company’s valuation, synergy creation and post deal performance

• Author Details:   
• Khushbu Thakker ^*

This research paper provides a comprehensive analysis of mergers and acquisitions (M&A), exploring their historical evolution, present-day drivers, and implications on corporate performance. Drawing upon primary data, the study evaluates the strategic motivations behind M&A activities, such as market expansion, synergy creation, and diversification. It investigates the financial, operational, and organizational impacts of M&A on shareholders’ wealth, company valuation, and employee productivity. Primary data was collected using a structured questionnaire distributed among professionals in finance-related fields, with results analyzed through correlation and ANOVA tests. Findings highlight that horizontal mergers are predominant, with strategic fit and due diligence playing critical roles in deal success. The study also identifies key valuation methods and integration challenges post-merger. Despite limitations in sample size and data variability, the research offers practical insights for managers, investors, and policymakers, while recommending further empirical studies with broader and more diversified datasets.

Keywords: Strategic Fit, Synergy Creation, Post-Merger Integration, Horizontal Mergers, Due Diligence