Assessing pre- and post-merger financial performance: A global study of B2B companies across four sectors

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Abstract

This study contributes to the understanding of the financial performance associated with mergers and acquisitions (M&A) in the business-to-business (B2B) sectors, an area of strategic and economic significance. It examines the pre- and post-merger financial performance of ten randomly selected companies in four distinct B2B sectors, all publicly listed on the National Stock Exchange (NSE) of India. The dataset includes eight years of financial data — four years before and after each M&A event. Sectoral financial ratios such as net profit margin (NPM), return on equity (ROE), and return on assets (ROA) are analysed using descriptive statistics and paired sample correlation to identify performance variations. The use of a convenience sample allows for a longer observation period and a deeper understanding of sector-level differences. The results indicate that post-merger financial performance is significantly determined by both the nature of the acquisition and the specific sector in which the company operates, offering valuable insights for academics, practitioners, and policymakers engaged in strategic financial analysis.

Keywords: Financial Performance, Merger, Synergy, Business-to-Business, Financial Metrics

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G30, G31, G32, G33, G34

Received: 30.01.2025
Revised: 20.03.2025; 27.03.2025
Accepted: 14.04.2025
Published online: 16.04.2025

How to cite this paper: Sendilvelu, K. (2025). Assessing pre- and post-merger financial performance: A global study of B2B companies across four sectors. Corporate Ownership & Control, 22(2), 21–33. https://doi.org/10.22495/cocv22i2art2