Impact Of Mergers And Acquisition On Corporate Performance

An evaluative study on the impact of mergers and acquisition on corporate performance/profitability/efficiency Merger is a process in which to firms can mix their business to perform to a good level or to achieve a goal which either of these firms are not able to achieve alone. Mergers can take place on the same industry as well as in the different industries. It may b horizontal, vertical, conglomerate merger based on the nature of the business and the way the businesses are merging and the relevant and non-relevant industries. Acquisition is a process in which firm basically acquires the operation, management or the complete corporation. Acquisition may be friendly and may b hostile depending on the nature of transaction. Both mergers and acquisition may have impact on the performance of the organization after the occurring of the transaction. Impact may be positive as well as negative on corporate performance based on different factors in different economies. Mergers and acquisition have a both positive and negative impacts on a firm s financial performance or on its profitability. Firm may be in manufacturing sector or it may b service sector, but whenever the transaction of merger and acquisition takes place it effects the performance. In Africa Bank s financial performance effects after the mergers takes place and the firm s financial performance comprises or checked by Liquidity ratios, Performance ratios(ROA ROE), and Investment valuation(EPS). TheShow MoreRelatedThe Effect Of Internal Control On Mergers And Acquisitions Essay802 Words   |  4 Pageslittle evidence on impact of internal control on mergers and acquisitions (MA). This paper examine the relationship between internal control quality and MA performance. Specially, this paper takes a look whether or not internal control impact differently on the performance of three types of MA: horizontal mergers, vertical mergers and conglomerate mergers. 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