Impact of Vertical Merger and Acquisition on Working Capital Condition of Some Selected Enterprises

The present study seeks to analyse the impact of vertical merger or acquisition procedure on working capital condition of the combined or acquiring company. This paper mainly focuses on whether the working capital position changes after vertical merger and or it remains intact after the vertical merger. This study only concentrated on the vertical nature of merger as the companies in this merger have supplier or customer relationship, so the effect on working capital can be shown better through this. It can be concluded that due to vertical integration the overall net working capital position remains intact and moreover in most of the cases the effect on the current assets and liabilities individually are favourable. If the working condition remain sound without any adverse effect due to the vertical merger or acquisition then it will favorably affect the external investors, creditors and internal human resource of the company.