N.M.Leepsa, Chandra Sekhar Mishra
Economic Times (ET) Cases, Times of India Group, Case Clearing House
Publication year: 2016

Abstract

This case study on Crompton Greaves is meant to enable students to understand what makes Merger and Acquisition (M&A) successful. The objective is to analyze the non-financial factors affecting post-M&A performance along the financial factors for a specific company that has gone for M&A. In this case study, an attempt is made to analyze the M&A strategy of Crompton Greaves and post-M&A performance by applying different financial metrics. This case study focuses on Crompton Greaves’ historical background, M&A deals done by the company, the motives behind the M&A strategy of Crompton Greaves, merger and acquisition benefits and factors that influenced the Crompton Greaves success in M&A. It also deals with the pre- M&A activities influencing the execution of M&A deals. Thus, the case study would bring more clarity to the various issues of M&A performance and improve the research findings. Crompton Greaves is one of the largest manufacturers of Electrical and Industrial Equipment machinery in India. This case study shows the survey results of the M&A of Crompton Greaves which was conducted through a questionnaire to elicit responses regarding different aspects of M&A in Crompton Greaves.

Pedagogical Objectives

In view of the context as above, the pedagogical objectives of this case study are:

  • To understand various strategic motives behind the M&A deals by Crompton Greaves
  • To evaluate and ascertain the impact of M&A on Crompton Greaves’ financial performance
  • To explore the factors influencing the post-M&A performance of Crompton Greaves
  • To understand the issues and the challenges faced by Crompton Greaves, while carrying out M&A deals

Case Positioning and Setting
This case study can be used in MBA Program/Executive MBA/BBA – Finance Management course – Merger and Acquisition