TABLE OF CONTENTS
CHAPTER ONE |
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1.0 INTRODUCTION |
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1.1 BACKGROUND OF THE SUBJECT MATTER |
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1.2 PROBLEMS ASSOCIATED WITH THE SUBJECT
MATTER |
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1.3 THE IMPORTANCE OF STUDYING THE AREA |
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1.4 DEFINITION OF IMPORTANT TERM |
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1.5 REFERENCES |
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CHAPTER TWO |
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2.0 LITERATURE REVIEW |
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2.1 THE ORIGIN OF THE SUBJECT AREA |
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2.2 SCHOOL THOUGHT WITHIN THE SUBJECT MATTER |
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2.3 THE SCHOOL THOUGHT RELEVANT TO THE SUBJECT
MATTER |
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2.4 DIFFERENT METHOD OF STUDYING THE PROBLEMS |
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2.5 SUMMARY |
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2.6 REFERENCES |
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CHAPTER THREE |
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3.0 CONCLUSION |
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3.1 DATA PRESENTATION |
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3.2 ANALYSIS OF THE DATA |
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3.3 RECOMMENDATION |
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3.4 CONCLUSION |
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3.5 REFERENCES |
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CHAPTER ONE
1.0 INTRODUCTION
1.1
BACKGROUND OF THE SUBJECT MATTER
The subject matter of merger an acquisition first emerged in the Nigeria
capital market in 1983 and it has become charged with controversies and
conflicting view as a young and developing economy, the Nigerian economy
environment was not prepared for the intricacies of merger and acquisition,
which are generally considered the problem of mature countries.
The impact of global economic depression and in particular the glut in the
international oil market, caught up with the Nigeria economy and its industries
and corporation one of the industries survival strategies was merger and
acquisition plans.
Merger imply combination or fusion of two or more formerly independence
business units into one organization with a common ownership and management.
Acquisition on the other hand includes all business and corporate
organizational and operational devices and arrangement by which the ownership
and management of independently operated properties in business are bought
under the control of single management.
Accordingly therefore, this term is used n changeably with mergers and well know
as the term mergers and acquisition is to lawyers, accountants and businessmen
generally, it was never used neither was it defined in the company Act of 1968”
Speared on by tough Luck and the encircling whiplash of the economic situation
Nigerian corporation skyline is fast undergoing a change.
Top company executive,
who have suffered out of heart burns under the scouring heat of attempting to
prop up sagging turn over figures and the flat ball own ballooning bank
overdraft are now able to solve these problem which appear impossible one such
solution being mergers and acquisition.
It is a word now gaining prominence and toping the agenda of company boardroom
meeting a company’s team up to service the economic situation.
With these developments, there arose many unresolved problems in relation to
the accounting, atomic, legal and regulatory aspects of any definite statement;
with wide range view emanated according is the varying prospecting of those
concerned. In this type of sceneries, it expedient that something must be done
about it. This is the objective of this research in view of foreging
discussion, this study shall also consider the commercial objective of merger
and acquisition, among which is achieved cost technology or capture the market
of the target company, or to affect the reorganization o group of associated
company, or so as to achieve tax advantage to the same devise cold be resorted
to merger and acquisition could also be used to gain control of company or to
boil out an oiling business so as to avert redundancy.
1.2 PROBLEMS
ASSOCIATED WITH THE SUBJECT MATTER
Mergers and acquisition
scheme is a way of pulling out of oiling company from the woods, it is also
away of making a growing fir even bigger. Unfortunately the mere existence of
this term is the dictionary of firm is not enough for the fulfillment of their
purpose.
Mergers and acquisition,
scheme although used in the advance country of the world notably American and
United Kingdom is virtually new in Nigeria. The number of firms that have
engaged in land credence to this. What is the role of mergers and acquisition
in the economic and corporate realization of firms?
Although most firms are
not growing why have thy not resorted to mergers an acquisition?
There are certain reasons for this which sterm from the fact that the investor,
managers and the general public are sufficiently experienced to appropriate are
briefly as stated below.
v To increase market power or share
v To build on economic empire.
v To gain promotional projects
v To expand production without price
reduction
v To acquire capacity at reduced
price
v To obtain real economic of scale.
v To obtain monetary economic of
scale. Etc.
1.3
THE IMPORTANCE OF STUDYING THE AREA
Merger and acquisition scheme is a very new kind of business arrangement in
Nigeria, though it has been in use in United Kingdom and united state of
American for decades. It was introduce into Nigerian capital market as a result
of the dwindling economic fortune of the country.
With scarcity of foreign exchange resources, it become increasingly difficult
to purchase new capital equipment and therefore, company wishing to expand or
diveste their operation were compelled to seek out oiling company with suitable
plant and infrastructure to acquire.
There are company which only be glad to be believed out willing purchaser, this
absolving them of liability to their bankers, ensuring labour retention and
with shareholder ending up with some financial consideration for their
shares.
“The fortune of many
founder owned companies tends to decline with the demise of the founder or
their successor or the off spring many not have the technical skill or are
unwilling to purchase management exercises. These successors could sell this
company to willing purchase and there by presence jobs and help sustain the
economy.
In view of the forgoing and the man advantages of mergers and acquisition which
may look simple from outside. The study will also look at the pros and cons o
mergers and acquisition management of post mergers situation, after which
recommendation will be proposed for the problems encounter in mergers and
acquisition scheme.
1.3 DEFINITION
OF IMPORTANT TERMS
Bankrupt: A state under which some one is unable to
pay his debt as and when they fall due.
Capital Market: Is a collect of financial institutions set up
for granting of medium and long term loans such as government securities,
market for corporate bodies market for cooperate share and market for mortgage.
Capital Budgeting: Is a statement of the firms planned investment
generally base upon estimate of future sales, cost of production need and
available of capital.
Insolvency: The condition in which a firm or individual
liabilities exceeds its assets.
Stock Exchange: The fall in value of assets due to usage
and or passage of time
Dividend: profit of a company divided by among the
shareholders
Mergers: is a combination of fusion. It could be
two or more formerly independent business unit into one organization wit a
common ownership and management.
Acquisition: is where by all business an corporate
organizational and operational devices and arrangement by which the ownership
and management of independently operated properties and business are bought
under the control of single management.
Joint Stock: where two or more person or companies
agree to share in some trading adventure.
Department | Business Administration and Management |
Project ID Code | BAM0109 |
Chapters | 3 Chapters |
No of Pages | 32 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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