Merger Valuation Process And Evaluation Of Financial Performance In Case Of United Insurance Company And Shama Plc

This paper entitled “Merger: Valuation process and Evaluation of FinancialrnPerformance” circulates around the key issues in merger valuation and financialrnperformance of merged companies before and after merger.rnThe objective is to identify the rationales of merger, strategic and financial intents ofrnmergers and evaluate the performance of merged companies before and after merger.rnThe data used in the study was obtained through questionnaire and interview with thernexecutives of merged companies. In addition, the deed of merger and financial statementsrnare thoroughly investigated to understand the merger process and financial performancernof the merged companies. The performance 5 years before merger and 5 years afterrnmerger are investigated using financial statement analysis. In order to substantiate thernresult t- test was used for hypothesis testingrnThe study finding indicates that the major merger motive is enhancing profitability. It isrnalso found that the merger process is simply pooling the audited financial statements ofrncompanies going for merger.rnThe study analysis made both by financial statements analysis and the hypothesis testingrnmade shows that performance of firms after merger has not increased as compared to thernperformance of firms before merger

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