FACTOFS DETERMING THE PROFITABILITY OF ACQUIRERS IN CROSS-BORDER ACQUISITIONS: AN EMPIRICAL STUDY

Abstract

A series of globalization wave that engulfed the entire business world had direct impact on Indian corporates which left no stone unturned to adapt and evolve the new business model pre-dominated by mergers and acquisitions to achieve their objective inorganically. Viability of mergers and acquisitions as an strategy to expand scale and size of operations greatly depended upon how it helped in increasing revenue and profits. The relative cost structure and the factors of production attracted many Indian corporates to go for cross-border acquisitions and the momentum was shaped beautifully by Indian IT & ITES firms. But the outcomes of mergers and acquisitions had mixed composition, wherein many firms improved upon their financial results and many failed to achieve desired motives.