ABSTRACT
This research work titled “The effect of Merger and Acquisition on an organizational performance shows the achievement of companies coming together.
For merger and acquisition to be worth as described, there should be synergism, the amalgamation between two separate companies to form a single company is known as merger also acquisition is the purchase of a controlling interest on company by another company.
A merger can be between two companies with quoted share in stock exchange. It can also be between companies falling under the same schedule.
The analysis aspect of this project talks about the data and interpretation and the two essential aspect of research project It also the imperative interpretation of result. The recommendation of the project illogically treat the companies domicile in Nigeria that fall under oil companies in Nigeria. It also raised to ensure a good relationship between two companies.
The objective of the study will provide an insight and measure the degree at which organization with another organization profitably, increase in market share, cost saving (efficiency) product diversification.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
In all human activities, there are usually successes and failures. Businesses are therefore no exception. In periods of boom as we experienced in the mid seventies during the oil boom, many business firms and individuals strived in an era of abundance and squander mania. In such an era, employment, production and income are at there peak levels and. government expenditure rise considerably. During this period also, no one complains and businessmen do not think of means of survival and sustenance.
On the other hand, when the bay days are over and down-turns take over the dooms clays arrive and business failure becomes the other of the day as a result of adverse macro-economic condition. Consequently, expansion is hindered for even surviving firms. This is the time when company executives, government and individual remember to think of “MERGERS AND ACQUISITIONS” as viability, belt tightening and survival.
To avoid increase in liquidation and bankruptcy of companies, to stem the tide of increasing unemployment that might result from closure of companies. “MERGER and ACQUISITION is a valuable route to pool together the strength and synergies in similar organizations to generate increasing business activities to sustain the future of our companies. “MERGER AND ACQUISITION” MW from serious financial distress and provide such business with new management and better access to new financial resources that will save organization from negative effect of performance.
Every business organization expects to make profit ultimately. Profitability justification and rational for remaining in business of course investors, that is, the owner do not only see the profit level as a economic, etc.
The issue of Merger and Acquisiton in present day business management has been a dream realized, Merger and Acquisition have played an immense role in the external growth and internal growth of leading companies worldwide.
In United State of America, merger started between 1890 to 1904 and as continue through to the present day. Presently, about two third [23] of the large public corporation in the United States have merged in their history.
Merger And Acquisition must be seen as available means of saving, companies from serious financial distress and provide such business with new management and better access resources that will save an economy.