The Indian corporate sector has experienced a major restructuring through mergers and acquisitions, with the changes brought about by the Industrial Policy Resolution of June 1991. In today’s globalized economy, mergers and acquisitions are being increasingly used the world over, for improving competitiveness of companies through gaining greater market share, broadening the portfolio to reduce business risk, for entering new markets and geographies, and capitalizing on economies of scale etc. The present study is an attempt to evaluate the impacts of merger and acquisition on profitability and liquidity performance of acquired companies. The study period is ten years before five years and after five years of M & A. This study utilizes secondary data while Ratio analysis, mean, standard deviation and student paired T -test were used in analyzing the data for a selected samples. The results of the empirical findings show that there is positive impact of merger and acquisition on liquidity performance of selected sample