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Abstract
Merger and Acquisition (M&A) turned out to be a significant strategy for Pharmaceutical companies to sustain in the industry due to the rapid technological changes and competitive pressures. But not always mergers give positive result for both target companies and acquiring companies. Since each merger is having different motives to merge, both the parties should take utmost care while choosing a target company or acquiring company. This study aims to identify the various pre –merger firm specific factors which can affect the M&A decision of a firm in the pharmaceutical industry. And the result of the Panel logit analysis showed that Market capitalization and leverage ratio is the significant factor which affect M&A deals. A firm with high R&D and Labour intensity and Capital intensity will have more chance to participate in merger. While a firm with high profitability margin and tobins q ratio has less chance to participate in M&A deals. And a firm with more debt has high chance to participate in M&A deals.