Vacillate the Performance of Textile Sector after the Merger: A Case of Shahzad Textile Mills Limited (STM)

Abstract

Before and after the merger of Shahzad Textile Mills Limited (STM), the financial performance of the company was analyzed. The analysis was carried out using 12 vital ratios and the financial statements for eight years (2008-2016). After getting the results of pre and post-merger (short-run) and post-merger long-run analysis forecasting was done from 2017-2020 which will help management to eliminate uncertainty in future. The analysis was carried out to eliminate the uncertainty in the future. The results of the analysis revealed that the financial performance of the company has been satisfactory after the merger. The long-term results of the analysis revealed that the financial performance of the company was poor before and after the merger. The merger did not provide the company with many benefits over the long run.