The Use Of Merger And Acquisition As A Growth And Survival Strategy In A Depressed Economy
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THE USE OF MERGER AND ACQUISITION AS A GROWTH AND SURVIVAL STRATEGY IN A DEPRESSED ECONOMY
TABLE OF CONTENTS
Table of content
1.0 INTRODUCTION OF USE OF MERGER AND ACQUISITION AS A GROWTH AND SURVIVAL STRATEGY IN A DEPRESSED ECONOMY
1.1 Statement of problem
1.2 Purpose of the study
1.3 Significance of the study
1.4 Statement of hypothesis
1.5 Scope of the study
1.6 Limitation of the study’
1.7 Definition of terms
2.0 LITERATURE REVIEW of Use OF USE OF MERGER AND ACQUISITION AS A GROWTH AND SURVIVAL STRATEGY IN A DEPRESSED ECONOMY
2.1 acquisitions in Nigeria
2.2 Types of mergers and acquisition
2.3 Success and failure of mergers and acquisition
2.4 Reason for failure
2.5 Benefits of merger and acquisition
3.0 RESEARCH METHODOLOGY OF USE OF MERGER AND ACQUISITION AS A GROWTH AND SURVIVAL STRATEGY IN A DEPRESSED ECONOMY
3.1 Source of data
– Primary data
3.3 Method of investigation
4.0 DATA PRESENTATION AND ANALYSIS OF USE OF MERGER AND ACQUISITION AS A GROWTH AND SURVIVAL STRATEGY IN A DEPRESSED ECONOMY
4.1 Data presentation and analysis
4.2 Test of hypothesis
5.0 SUMMARY, FINDING, CONCLUSION AND RECOMMENDATION OF USE OF MERGER AND ACQUISITION AS A GROWTH AND SURVIVAL STRATEGY IN A DEPRESSED ECONOMY
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION
SUMMARY OF FINDINGS
The researcher has investigated the use of merger and acquisition as a growth and survival strategy in three (3) selected Nigeria firms, namely;
(i) John Holt limited, which is the product of ogbemudia form merging with John Holt investment limited.
(ii) Unilever Nigeria plc formally known as lever brothers which is the product of Lipton Nigeria Nigerian merging with classed brought product limited and.
(iii) Nigeria bottling company plc, which acquired Nigeria solf drinks.
The finding of this reseach work are therefore as following:
(i) though the analysis of data gathered, it was established that the profitability of the three companies studies is dependent on mergeri and acquisition. Put difference, merger or acquisition has an effect on a firm’s profitability. One can therefore argue that there are positive relationship between merger and acquisition and a firm’s profitability and growth.
(ii) Similar, the salient performance indicators chart of the three companies equally showed that their EPS was greatly enhance after the adoption of merger and acquisition strategy to keep hand above water.
(iii) Also established is a significant improvement of the general staff welfare of the staff of the companies.
(iv) Finally, on whether merger and acquisition are necessary for entry into a new product market and new geographical market. The study reveals that mergeri and acquisition are really necessary and absolutely needed.
The used of merger and acquisition as a growth strategy by the three selected Nigerian companies had been showed to have contributed to the growth and survival of their firms. For it has been proved that the profitability of the companies were dependent various times. It is also agreed that merger and acquisition are critical to a healthy expansion of business as they involved through successive stages of growth and development.
In a similar vain, the earning per share of the three companies were found to have improved courtesy of merger and acquisition strategy.
Thus the finding of this reseach agrees with some of the views of some expect contained in chapter two literature review.
Firstly, this study has established the fact that business mergeri and acquisition has contribution 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. The same benefit will go a long way to company when recommendation that the use of merger and acquisition be resorted to especially when a business is not performing well and the economy is in depression.
Secondary, business ought therefore, to restructure themselves and combine resource (merger and acquisition) to achieve high profitability and efficiency.
Thirdly, firms that want to acquire other or combine with other firms (mergeri and acquisition ) resource should not hesitated as this help to improved the staff welfare package greatly.
Lastly, business should restructure themselves and combine resource (mergeri and acquisition ) to achieve an increased market share of the company involved.