M&As is wealth maximization of shareholders by seeking gains in terms of synergy, economies of scale, better financial and marketing advantages, diversification and reduced earnings volatility, improved inventory management, increase in domestic market share and also to capture fast growing international markets abroad. But astonishingly, though the number and value of M&As are growing rapidly, the results of the studies on the impact of mergers on the performance from the acquirers’ shareholders perspective have been highly disappointing. In this paper an attempt has been made to draw the results of some of the earlier studies while analyzing the causes of failure of majority of the mergers. While making the merger deals, it is necessary not only to look into the financial aspects of the deal but also to analyse the cultural and people issues of both the concerns for proper post- acquisition integration and for making the deal successful. But it is unfortunate that in many deals only financial and economic benefits are considered while neglecting the cultural and people issues. Making the mergers work successfully is a complicated process which involves not only putting two organizations together but also involves integrating people of two organizations with different cultures, attitudes and mindsets. Meticulous pre- merger planning including conducting proper due diligence, effective communication during the integration, committed and competent leadership, and speed with which the integration plan is integrated, together will pave for the success of M&As. Findings of poor post-merger performance of the acquirers in some of the earlier studies may be attributed to methodological errors in the identification of long-run returns. These errors may arise either through the choice of inappropriate control models or through the introduction of some element of bias either in the chosen sample, the benchmark, or both. Potential areas of sample and benchmark control bias include survivorship and selection bias together with inappropriate tests of non-normal returns distributions. Therefore, there is also a need to develop appropriate methodologies to effectively measure the performance of the M&As and their effects on the shareholders. 6. References 1. Abhyankar, A., K.Y. Ho and H. Zhao, “Long-Run Post–Merger Stock Performance of UK Acquiring Firms: A Stochastic Dominance Perspective,” Applied Financial Economics, 15(10), (2005), 679-690. 2. Agrawal, A., J.F. Jaffe and G.N. Mandelker, “The Post-Merger Performance of Acquiring Firms: A Re-Examination of an Anomaly,” Journal of Finance, 47(4), 1992, 1605-1621.