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Indian Journal of Finance

ISSN: 0973-8711 Frequency: Monthly Peer Review: Double-blind Published since: 2007 Language: English
A publication of AMCPL
amcon.co.in
New Delhi, India
Indexed in: Scopus Q2 UGC-CARE Group II Google Scholar J-Gate NISCAIR Crossref

Original Article

Open Access Original Article

Management Model: A Framework for Evaluation of Alternative Mergers in the Wake of Down-Turn

D. Maheswara Reddy1,  K. V. N. Prasad2,  C. R. Reddy3

1 Assistant Professor, ITM Business School, Warangal – 506 001, Andhra Pradesh

2 Assistant Professor, ITM Business School, Warangal – 506 001, Andhra Pradesh

3 Professor, Department of Commerce, Sri Krishnadevaraya University, Anantapur, Andhra Pradesh

Volume 6
Issue 1
Pages 32–40
Year 2012
Published: Jan. 1, 2012
Abstract

The paper analyzes the factors hindering the success rate of mergers and acquisitions during the economic downturn scenario. In today's world economic scenario, from various research studies, it has been found that 50 to 60 percent of cross border mergers and acquisitions have failed. A splendid effort is made to know the reasons for failure of cross border mergers and suggest the possible merger combinations using the integrated techniques of value creation model, value based planning and Herfindahl-Hirschaman Index in this paper. And this research paper concludes with the emergence of Aurobindo-Ranbaxy Limited as the result of merger of Aurobindo Pharma with Ranbaxy Laboratory as a feasible, possible and viable merger instead of the one with Cipla Laboratories Limited.

Keywords Bear Hug Beta Cash Flow Herfindahl-Hirschaman Index (HHI) Present Value Synergy Market Share Aurobindo Datong Bio Pharmacy Limited (ADBPL) Aurobindo-Ranbaxy Limited (ARL)
How to Cite

D. Maheswara Reddy, K. V. N. Prasad, C. R. Reddy (2012). Management Model: A Framework for Evaluation of Alternative Mergers in the Wake of Down-Turn. Indian Journal of Finance, 6(1), 32–40.

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