This paper investigates the impact of mergers and acquisitions (M&A) on corporate performance. It compares performance of the corporates involved in M&A before and after M&A. The results pertaining to operating cash flow ratios show that there is an improvement in performance of the acquiring firms in the post-M&A period. The analysis in terms of Du Pont shows improvement in the long-term operating profit margin of the acquiring firms. This indicates that the acquiring firms earn higher profits per unit net sales after M&A. The higher cash flows are generated primarily due to the better operating margins.