Abstract :
Mergers and Acquisitions (M&A) have been viewed a very important strategy of inorganic
growth by firms all over the country. Large number of studies has been undertaken in order to
measure the performance of the firms that involve in M&A activities. There is only limited
number of studies that looks into the reasons behind M & A s by firms. This paper is an
attempt to identify the motives of M & A by acquiring companies in India. The study will help
us to understand the motives of acquisition which may help in better understanding the
performance of companies post merger. The study reviews the offer letter submitted to SEBI by
213 Indian acquirers during the period 2009- 2010. The study finds out expansion to be the most
important motive behind an acquisition, followed by growth and consolidation. The least
important motive for acquisition is synergy. The sample firms are also classified based on the
industry of the acquirer. Out of the total sample Investment services industry is top among
undertaking M7A during the study period. The motives of acquisitions are also classified on the
basis of the acquirer industry
Keyword :
Mergers and Acquisitions (M&A) have been viewed a very important strategy of inorganic growth by firms all over the country. Large number of studies has been undertaken in order to measure the performance of the firms that involve in M&A activities. There