Why do firms merge/acquire: an analysis of strategic intent in recent M&A activity among Indian firms

Abstract

We analyse the intents of acquiring firms and target firms in the case of thirty recent M&A deals involving at least one Indian firm. The findings indicate that horizontal acquisitions help retain or gain market leadership. Market entry may be a dominant motive for MNCs acquiring domestic firms, and MNCs may offer higher premiums than domestic acquirers for the acquisition. Complementarity of intent between the two firms is important for leveraging synergies