The main purpose of a merger or acquisition is to achieve the expected financial results namely the earnings and cash flow. But there are certain other measures that serve as key indicators for measuring post merger effi

The main purpose of a merger or acquisition is to deliver the expected financial results namely earnings and cash flow. However, the criterion to judge a successful merger differs depending upon the conditions. Different factors may be considered for making value judgments such as growth in profit, dividend, company's history, and increase in size, base for growth, etc. There are certain measures that serve as key indicators for measuring post-merger efficiency. The indicators may be grouped as: Financial outcomes. Component measures of these outcomes namely revenues, costs, net working capital and capital investments. Organizational indicators such as customers, employees and operations. There are broadly four possible reasons for business growth and expansion which is to be achieved by the merged company. These are (1) Operating economies, (2) Financial economies, (3) Growth and diversification, and (4) Managerial effectiveness.