Mergers and Acquisitions Scenario in It/Ites in India

Mergers and acquisitions have become a growing trend for companies to inorganically grow a business within its particular industry. There are many goals that companies may be looking to achieve by doing this, but the main reason is to guarantee long-term and profitable growth for their business. Companies have to keep up with a rapidly increasing global market and increased competition. With the struggle for competitive advantage becoming stronger and stronger, it is almost essential to achieve these mergers. Through research I will attempt to dissect the best practices for achieving merger success.

* France 's Vivendi acquired American video game maker Activision for about $9.8 billion, the largest American M&A deal since the credit crunch took hold in July, reflects a growing trend, experts say (Pantin 2008). Richard Peterson, stated "They show that foreign buyers perceive value in the U.S. marketplace, and are willing to put their capital in U.S. operations." The increase in foreign acquisitions is helping sustain America 's economy by bringing in additional capital and adding jobs, according to a new report published

Some high-profile takeover targets share price for the steep discount, they signed the agreement price, showing cracks that may be lurking in the current trading boom. Such as Take Office Depot Inc. The company’s stock trades 29% below the price Staples Inc. agreed in February to pay for its smaller rival. I believe the growing number of investors worried about antitrust regulators will block an agreement, combined with the country's two largest office supplies chain. Cigna Corp.’s stock is 22% below the value of Anthem Inc.’s $48 billion offer, while oil-field-services provider Baker Hughes Inc. trades 17% cheaper than the price of its pending $35 billion sale to Halliburton Co.

This session will outline the implication of different M&A trends in North America aftermarket and its impact on the channel members.

Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.

New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your

AT&T has been no stranger to the mergers and acquisitions activity within the telecommunications industry. The company’s most recent purchase has been DIRECTV for about $48.5 billion in both cash and stock. Although the pay-for-television market is moderately developed, this deal enables AT&T to expand and negotiate content agreements with some of the largest media outlets. This transaction also gives the company access to DIRECTV’s 18 million subscribers, which will boost its cash flow potential and generate annual cost savings of $1.5 billion within the next five years. Extra free cash flow is crucial for AT&T at the moment since the company has chosen to heavily invest in its wireless lineup.

So the market could be very attractive to many investors and foreign companies. In order to learn more about this market, some important points will be discussed thoroughly.

Islam, S., Sengupta, P., Ghosh, S., & Basu, S. (2012). The behavioral aspects of mergers and acquisitions: A case study from India. Global Journal of Business Research, 6(3), 103-112.

In the recent finance literature, most empirical analyses of the returns to M&A are based on event studies and the findings from these differ depending on whether the research is focused on the target or the acquiring companies. Varying time frameworks, abnormal return metrics, benchmarks and weighting procedures also make comparisons difficult and measurement of long-term abnormal performance complex. Loderer and Martin (1992) investigate 304 mergers and 155 acquisitions that took place from 1965-1986 and document a negative but statistically insignificant

News of the agreement did not come as a major surprise to most observers as the negotiations had been in place since February. The stock prices of both companies had been

Abstract- Tata Group, was founded by Jamsetji Tata in 1868 this group is India’s most respected institutions today. Tata Sons Limited holds major share of Tata Group which is a conglomerate. In this study we will look into how Tata Consultancy Service Ltd which is one of its conglomerate has risen to be one of the best in India.

As with IPOs, there are strengths, and weaknesses associated with acquisitions. Obviously, those strengths and weaknesses must be evaluated thoroughly prior to making the decision to seek an acquisition. Opportunities, although mainly positive, are also essential considerations. The opportunities associated with acquisitions are readily apparent and correspond with the strengths of this option for expansion. Acquisitions provide important opportunities for increased shareholder value, brand recognition, and profitability, in addition to certain tax benefits.

According to Parnell, “The attractiveness of mergers and acquisitions seems intuitively obvious: Two firms join forces and the combined organization possesses all the strengths of the individual firms” (2006).

The easy-money policy of the Federal Reserve and the cash-swollen balance sheets of corporations and private equity firms alike contributed to an explosion of deal-making in 2015. Long term growth in vehicle production and the positive outlook for vehicle sales over the next five years have made automotive one of the leading sectors for M&A. We expect deal activity in the automotive sector to remain strong during 2016, but to taper off from 2015 levels. The biggest factor that will suppress deal activity this year is the impending interest rate increase by the Federal Reserve. Other deal-squelching factors include geopolitical instability (e.g., in the Middle East and Russia) and the relative scarcity of companies that can be purchased at bargain prices.