Assessing Post-Acquisition Performance: A Case Study of Sun Pharmaceutical Industries Limited

Author(s)	Mr. Ranjit Kumar Paswan
Country	India
Abstract	In the present competitive business environment, merger and acquisitions (M&A) have emerged as dynamic process for companies to achieve peripheral growth and expansion of their operations. A merger is basically the combination of two or more companies into a single entity. The study conducted a comprehensive examination of financial performance of Sun Pharmaceutical Industries Limited before and after acquisition of Ranbaxy Laboratories. The data were collected for a period of twelve years from 2010 to 2021. The period was divided between two phases one is representing the period of before acquisition and the other one representing the after-merger period. The study selected various financial ratios representing liquidity, operational efficiency, profitability, capital structure, turnover and dividend policy. T-test analysis was applied to examine the changes in performance before and after the merger. It was observed that there is both positive and negative effects on the performance of Sun Pharmaceutical Limited. While it improved stability in certain ratios such as RONW and reduced dependence on debt. The company also faced challenges in liquidity and decline in profitability.
Keywords	Liquidity, Profitability, Capital Structure, Operational Efficiency, Dividend Policy
Field	Business Administration
Published In	Volume 5, Issue 6, November-December 2023
Published On	2023-11-11

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