THE IMPACT OF BUSINESS MERGER AND ACQUISITION AS A TECHNIQUES FOR GROWTH SURVIVAL STRATEGY IN A DEPRESSED ECONOMY:
(A CASE STUDY OF SELECTED NIGERIA COMPANIES
This project titled; The Impact of Business Merger and Acquisition as a Techniques for growth and survival strategy in a depressed economy (a case study of some selected Nigeria Companies) will be carried out and presented in five chapters. The information for the study was collected using primary and secondary methods of data collection. For the primary data collection, questionnaires, personal observations and oral interviews were used while existing literature relevant to the topic was consulted for the secondary data. The researcher used tables and percentages to analyze the data. The researcher made the following recommendations: The fact that business merger and acquisition has contributed to the growth of a firm. Hence the adoption of the merger and acquisition strategy by the three firm has contributed greatly to the overall growth and development of the companies. Firms that want to acquire other or combine with other firms (merger and acquisition) resource should not hesitated as this help to improved the staff welfare package greatly. Lastly, business should restructure them and combine resource (merger and acquisition) to achieve an increased market share of the company involved.
TABLE OF CONTENTS
Title page - - - - - - - - -i
Approval/Certification page - --- -- - - - -ii
Dedication - - - - - - - - - -iii
Acknowledgement-- - - - - - - - -iv
Abstract - - - - - - - - -- - -v
Table of contents - - - - - - - - -vi
1.1 Background of the study- - - - - - 1
1.2 Statement of problem - - - - 3
1.3 Purpose of the study- - - - - - - 4
1.4 Research questions - - - - - 5
1.5 Significance of the study- - - - - - 6
1.6 scope of the study - - - - - - - 7
1.7 Limitation of the study- - - - - - - 7
1.8 Definition of terms - - - - - - - 8
REVIEW OF RELATED LITERATURE
2.1 Overview- - - - - - - - - 11
2.2 Comparative analysis of the impact of merger and acquisition in financial efficiency of bank in Nigeria - 11
2.3 The impact of acquisition on firm performance: a review of evidence - - - - - - -- - - 16
2.4 The impact of Merger and Acquisition on employees, staff representatives and their unions -- - - - 17
2.5 The impact of Merger and Acquisition on consumers - 23
2.6 The impact of merger and acquisition on share
holders.-- - - - - - - - - 28
2.7 The impact of restructuring and mergers on working
conditions and the industrial relations climate - 32
2.8 The role of employee representation in mergers and restructuring- - - - - - - - - 36
RESEARCH DESIGN AND METHODS
3.1 Research design - - - - - - - 41
3.2 Area of the study- - - - - - - - 41
3.3 Population of study- - - - - - - 42
3.4 Sources of data - - - - - - - 42
3.5 Sampling method - - - - - - 43
3.5 Research Instrumentation -- - - - - 47
3.6 Validity and Reliability - - - - - - 47
3.7 Method of investigation - - - - - - 47
PRESENTATION AND ANALYSIS OF DATA PRESENTATION
4.1 data Presentation - - - - - - 49
4.2 data analysis - - - - - - - - 50
SUMMARY OF FINDINGS, DISCUSSION AND RECOMMENDATION
5.1 summary of finding- - - - - - - 56
5.2 Conclusion - - - - - - - 58
5.3 Recommendation - - - - - - - 59
1.1 Background of the Study
Firstly, the study of the impact of business merger and acquisition as techniques for growth and survival strategy in a depressed economy is introduce as the main thing which business merger and acquisition rely on a skill or knowledge brought together by the merger to accomplish business. However, Business are beginning to tell the full impact of the recession. To bring out development in companies joining together of merger and acquisition of the study.
Furthermore, techniques and growth is necessary to determine the performance and continual existence of any business organization without growth, a business hardly attract good management to itself. Hence the use of merger and acquisition as a techniques for growth and survival strategy in a depressed economy like it appears to be on the increase in recent time. This is not surprising nor considering large number of business failures and flop as a recent result or advise of micro and macro economic climate. It indicates that in a large or small scale, that merger and acquisition are necessary.
In the face of such hostile business climate, actually, some business organization that belongs to the ``wise group’’ started, thinking of how to pull their resource together by the way of the impact of business merger and acquisition as a techniques for growth survival strategy in a depressed economy. Meanwhile, Business merger and acquisition has played an important role in the growth and survival of many firms in Europe, United State of America, and Nigeria. But before venturing into such a gargantuan adventure, financial managers should view it as organization or employers.
1.2 Statement of Problem
In the high of the confusion and tumults of the modern business environment globally, some firms have flooded up while other only managed to keep a float. It is but interesting to observe that in the midst of such unfavorable business environment, some enterprises do not merely survive but post super profit. The logical question is what could account for the divergent fortunes of some firm of identical size and status in the some industry operating in the same economy. Hence not pretending to have all the answers. I make bold to state, that business merger and acquisition has become one of the fashionable surviving strategy for many companies.
It is therefore, the intension of the study to investigate the effect merger and acquisition on the performance of some selected companies in Nigeria.
However, for the purpose of the study of three public limited liability companies that have been selected,
1. John Holt plc
2. Unilever Nigeria plc
3. Nigeria bottling company plc
1.3 Purpose of the Study
The study is a deliberate effort to enquire into the effect of business merger and acquisition strategies on the performance of the above selected Nigeria companies or organization. The purpose of the studies also includes:-
(i) To find out the reason for business mergers.
(ii) To determine the impact of business merger and acquisition.
(iii) To determine whether merger/acquisition can contribute to the growth of the economy.
(iv) To as certain challenges facing mergers and acquisitions in the economy.
1.4 Research Questions
These include the following:-
i. Why do business merge together?
ii. What is the impact of merger and acquisition in the business?
iii. How can business merger and acquisition contributes to the growth of economy?
iv. What are the challenges facing merger and acquisition of business in the economy?
1.5 Significant of the Study
With the recent increase in the incident of investigation and bankruptcy of company together with dividing economic situation of the country, there is need for the examination of the effect of business merger and acquisition in the performance of Nigeria business organization. It is however believed that with the study of the companies that are involved in the strategy as a means of survival, one would be able to assess the profitability of the strategy being widely adopted in the Nigeria business environment as a survival cum growth strategy. Hence, it is in the light of the foregoing that the subject of this study is considered very significant.
Furthermore, the firm or the organization who are independent are the people that benefits from the study as the impact of business merger and acquisition as a techniques for growth and survival strategy in the depressed economy.
1.6 Scope of the Study
It is very important to acknowledge the fact that the study is restricted to the three companies earlier mentioned. However, the researcher will base his conclusion on the findings from such a few numbers out of many similar companies in the country.
Meanwhile, the study will also know that secking to establish any possible relationship as otherwise between profitability of company or increase on its caring per-share and its merger and acquisition scheme.
1.7 Limitation of the Study
The freedoms to run up the business, but in the limited, the effect is that in ability to show up together among the selected companies. Further, to the above restriction is the problem of lack of eleventh materials such as annual reports of some of the companies in the study from their corporate affairs commission .
Finally, time posed, yet another constraint are time, energy and also finance. With these entire problems not withstanding, it is hoped that the study will satisfy its objectives.