THE ROLE OF MERGERS AND ACQUISITIONS IN CORPORATE GROWTH AND DEVELOPMENT (CASE: SKYPE BANK NIGERIA PLC.). A RESEARCH PROJECT TOPIC ON BUSINESS MANAGEMENT
ABSTRACT
This research work focuses on the problem encountered by companies that have merged and the ones that acquired other companies. It also covers economic merits and implication of mergers and acquisitions, how companies seeking for mergers and acquisitions of which others to find a suitable partners and how they proceed in the merging process. As deals are becoming more complex and technology, people supporting it are becoming keys to mergers and acquisitions process. Planning of information and communication technology in stages of the integration process is vital to the realization of benefits of a mergers and acquisitions process. This statement is substantiated through review of literature from arcade i.e. as well as practitioners and case exemplification of the financial services organization.
The research method used was secondary data, statistical method in which chi- square and null hypothesis was used to gain the final result. From the questionnaire admitted to the staffs of the case company, it shows that most of them are used to mergers and acquisitions in one way and another, they are sure of job secured and not afraid of merger and acquisitions. It shows that mergers and acquisitions techniques enhances organizational survival in a distressed economy, it has also limited the severity of competition by increasing the company’s markets power.
1 INTRODUCTION
Mergers are processes whereby two or more previously autonomous companies come together under a common control. Mergers are important features of corporates structural changes. They have played an important role in the external growth in most of the leading countries in the world. In the United States of America, mergers occurred for the first time between 1890 and the Second World War and contin-ued until present day. Nigeria has experienced series of mergers and acquisitions processes due to the promulgation of Banks and Other Financial Institutions Degree (BOFID) of 1997, which bring about increment in the initial deposits of bank and insurance institution.
