Ishani Acharya, Academic Associate, Birla School of Law, Birla Global University Rahul Das, Assistant Professor, SOA National Institute of Law, SOA
ABSTRACT
In this globalized era, it is not uncommon for organizations to rely on inorganic growth to take their business forward. The end goal of any form of inorganic growth is to improve upon the business operations of the firm and increase the profits and turnover of the company. Mergers and acquisitions (hereinafter referred to as M&A) are very common forms of inorganic growth adopted by companies. The reasoning behind every M&A strategy is that a combined unit is muc more powerful than the sum total of separate individual units. M&A have been on a rise in India thanks to the Industrial Reforms in the 90’s which ultimately lead to liberalization, privatization and globalization in the country. As a result, over time, with increased investments in the economy, firms started adopting the best practices required for growth and expansion. But such transactions may not always lead to the success of an organization. This article gives an overview of the history of M&A in India, the different types of growth of a company, examine the different ways in which mergers and acquisitions can take place, the legislations in India regulating M&A and finally concludes with some pointers on how unsuccessful M&A can be avoided.
