The need for achieving economic growth and economies of scale are the main reasons for which the cross border mergers take place. Explain the parameters used for assessing post-merger performance of cross border mergers.

Cross border mergers can be truly assessed only by evaluating the post-merger performance of the merged entities. The following parameters may be used to assess the post-merger performance: Returns: A comparative analysis of the returns being generated by the entity pre- and post-merger should be carried out. If the merged entity is earning significantly higher returns than the merger is deemed successful. Cash flow and operational efficiency: If post-merger the cash flow increases significantly and this increased cash flow is put to use to obtain operational efficiency, this too shows that the newly created entity is performing well. Stock market reaction: If the stock market reaction to the announcement of merger is positive then the merger appears to be a positive step.