Mergers and Acquisitions

INSPITE OF THE POTENTIAL BENEFITS OF MERGERS AND ACQUISITIONS; THESE ARE NOT POPULAR STRATEGIES FOR BUSINESS return AND DIVERSIFICATION IN NIGERIA. WHY? ARE THERE fussy NIGERIAN FACTORS THAT INHIBIT THE ADOPTION OF THESE STRATEGIES? A SEMINAR PAPER PRESENTED IN PARTIAL FULFILMENT OF COURSE REQUIREMENT FOR ADVANCE pay THEORY (FIN 701) BY JAMES ADEKUNLE OLUWASOLA OLADEJO MSC FINANCE LEAD CITY UNIVERSITY, IBADAN referee: PROFESSOR WOLE ADEWUNMI FCA Faculty of Management and Social Science Department of Accounting INTRODUCTION Mergers and acquisitions (M& deoxyadenosine monophosphate;A) is one of the main business strategies and re-engineering process of the corporate finance world. The aim is to create a bigger company by taking at least two separates companies together to mold a company. Deals that worth millions of naira, even trillion sometimes be seal in the process of Merger and Acquisition. FCMB, CDL, NAMBL and Midas Banks merger in 2005 resulted in a total shareholders fund of over N28 billion, 8 other banks that formed Spring Bank worth N26 billion. At international level, the merger between Microsoft and Yahoo that went for approximately $44.6 billion are typical examples.

We often say that the perfect comparability for a merger or an acquisition is one gain one baffles three (1 + 1 = 3). The key principle bunghole buying a company is to create more appreciate for the shareholders. Two companies together are normally stronger than two companies separate. twain bring its spang-how, experience, culture and so on. There are opposite reasons why two companies decide to merge or to make an acquisition. It could be because they want to create a more competitive, cost-efficient company, to reduce their costs and for economies of scale reasons as well. Sometimes they know that they coffin nail be complementary, meaning by merging they can take advantage of both know-how and create a purify product because only one company cannot make it by its own. Despite all these benefits,... If you want to get a fully essay, order it on our website: Orderessay

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