Abstract:
This study examines how merger and acquisition activity affects the financial health of selected textile
mills (Fazal textile mills and Gadoon textile mills).Ratio analysis was used to assess the results ofmerger
. and acquisition. Ratios like (liquidity ratio, profitability ratio, turnover ratio, market ratio, and capital
structure ratio) were employed. According to theory, mergers increase firm performance due to synergies
gained, market dominance, increased profitability, and risk diversification. To determine if mergers result
in enhanced financial performance before and after merging, a comparison of the company performance
during the pre- and post-merger periods was done. Data spanning the years 2013 to 2020 were used, with
two years prior to the merger and eight following. The results ofthe merger and purchase were evaluated
using secondary data, which was gathered from the annual reports ofthe targeted textile factories. After
data analysis, results indicate that merger and acquisition activities have a detrimental impact on the
financial performance ofthe targeted textile mills.The analysis comes to the conclusion that the targeted
textile mills' financial performance did not improve following merger and acquisition; rather, it actually
declined.
