Current research aims to measure the post-merger performance of Indian manufacturing companies. Period of the merger and acquisition (M & As) was taken the financial year 2013-14. In this financial year total 11 mergers and acquisitions taken place in manufacturing sector, where both the target and the acquirer companies were from India. Out of this 11 mergers and acquisitions, researcher has taken a sample of five mergers and acquisitions to conduct the study. Researcher has used the ratio analysis to measure and compare the post-merger performance of selected five companies. Researcher has used five ratios namely; profitability, liquidity and leverage ratio. For measuring the profitability, two ratios have been measured one is return on asset (ROA) and other is return on equity (ROE), while for liquidity quick ratio and current ratio have been considered, for leverage ratio, debt equity ratio was measured. The period of the study to measure the post-merger performance has been taken from 2015 to 2016. It was found from the study that the performance of the companies has not improved after mergers and acquisition. There is a mixed results of analysis, post-merger performance of manufacturing companies of India is not equal, it varies from company to company.   
 
KEYWORDS: Mergers & Acquisitions, Liquidity, Profitability, Leverage & Ratio Analysis. 

Introduction  Any business can be expanded in two ways either through internal expansion or through external expansion. Internal expansion can be in the form of purchase of new assets, new technology, or starting new lines of production, while the external expansion is possible when a firm either diversify its business or acquire or takeover some other existing business. In case of external expansion, a business can purchase grow up overnight by taking over other existing business. There are various methods for the expansion of a business such as; mergers or acquisitions, takeovers, or amalgamations. External expansion is the most important tool to curb the competition and all the large companies in the world are taking advantage of this tool (Buckley, 2014).

             Mergers and acquisitions also termed as a strategy for entering into new markets instead of only expansion strategy. It is only after the globalization and liberalization, the unproductively of capital lying with the big corporate came into light. Mergers and acquisition helps the corporate in optimum utilization of the available financial resources and corporate restructuring. Mergers and acquisition became popular and widely used approach after the liberalization, and globalization process. Merger can be defined as a merge or unity between two or more than two firms into a single firm. Shareholder from all the merged firms will become the shareholders of the acquirer firms. In merger, the acquirer firm remains while the merged firm loses its entity. Acquirer Company acquires all the liabilities and the assets of the merged companies.