IMPACT OF MERGERS AND ACQUISITION ON BANK GROWTH AND EFFECTIVENESS

IMPACT OF MERGERS AND ACQUISITION ON BANK GROWTH AND EFFECTIVENESS (ECONOMICS PROJECT TOPICS AND MATERIALS)

ABSTRACT

Merger and acquisition as stated in study must be seen as an available means of saving companies from serious financial distress or liquidation, in that it provides such business with new management and better access to financial resources. Merger and acquisition enable the acquiring company to spread its risk, while still maintaining the firm’s rate of return. We have had problems of collapse in financial institution in Nigeria and also lack of confidence in the financial institution by bank depositors. As it is known that capital has became a contemporary problem which requires proper investigation, so in order to be in a safe position the government must put in place a proper investigation, of desirability or otherwise of the minimum requirements in banking viability, as viability is the major factor been adduced for the large increase in minimum capital requirement. In the process of merger and acquisition, the shareholders of the acquired company should be considered and merger should not tend towards monopoly.

To this end, merger and acquisition should be embraced and practiced in totality in Nigeria.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

One of the interesting area worth of study in finance is Merger and Acquisition. A corporate structural change. It is an important strategic decision by the management of any organization merger and acquisition are recognized as one of the ways of addressing bank dwindling performance.

A merger or acquisition is a combination of two or more companies in which all but one of the combining companies leases to exist and the serving company continues to operate in its original name, usually the acquiring company. Where the acquisition is not with the consent of the management of the acquires. It is referred to as a take over which can be protracted and hostile on the other hand an amalgamation or consolidation involves the combination of all or a portion of the asset and liabilities of two or more business unit or companies to form of new company, with all the combining companies dissolves while their operations are taken over by the new company. In a consolidation, the combining companies are usually of similar size.

IMPACT OF MERGERS AND ACQUISITION ON BANK GROWTH AND EFFECTIVENESS (ECONOMICS PROJECT TOPICS AND MATERIALS)