IMPACT OF MERGERS AND ACQUISITIONS ON FIRM PERFORMANCE IN THE INFORMATION TECHNOLOGY BUSINESSES OF BALOCHISTAN

Abstract

This research focuses on an in-depth analysis of mergers and acquisitions in the information technology industry of Balochistan, Pakistan. Mergers and Acquisitions are taking place in different industries around the world such as telecommunication, airline, health, hospitality, textile, pharmaceutical, and information technology. The current paper will take a step further as it will have an investigative stance on the reality and working of mergers and acquisitions in the information technology of Balochistan. Information Technology firms being highly innovative, and dynamic have been contributing the major share in Mergers and Acquisitions. A few common reasons are to grow, cut competition, enter a new market, or expand the product line to have additional market share and enhance strategic relationships. An empirical investigation has been done to study the patterns of merger and acquisition of information technology sector firm performance in Balochistan. The aim of the paper is to elucidate the process of making mergers to see the business integration and to find out how they can be systemically arranged to save the firm’s business from a huge failure. The main result of this research is to support the notion as a process and systemic framework rather than limiting it to the pre-merger and post-merger stages. Results show that Mergers and Acquisitions improve firm performance in the information technology businesses of Balochistan as firms are constantly improving their business processes and implementing effective strategies in the competitive industry. The success and growth of the businesses is ensured as the M&A process is conducted smoothly so that all the employees are satisfied with the business and the working environment as they can work up to their maximum potential. Moreover, we found that the M&A process is important in leading the firms in the right direction that will achieve a high level of success in the information technology industry.