Project Abstract

Abstract
Mergers and acquisitions (M&A) have become increasingly common in the business world as firms seek to expand their operations, increase market share, and achieve economies of scale. The impact of M&A on firm performance has been a subject of considerable debate among scholars and practitioners. This study aims to investigate the effects of mergers and acquisitions on the performance of firms in Nigeria. The research employs a quantitative research design, utilizing financial data from a sample of Nigerian firms that have undergone mergers and acquisitions. Various financial performance indicators such as return on assets (ROA), return on equity (ROE), and earnings per share (EPS) will be analyzed to assess the impact of M&A activities on firm performance. Additionally, qualitative data from interviews with key decision-makers in the acquired firms will provide insights into the strategic motivations behind the M&A deals. The findings of this study are expected to contribute to the existing body of knowledge on mergers and acquisitions and firm performance, particularly in the context of the Nigerian business environment. The results will shed light on whether M&A activities in Nigeria lead to improved financial performance, operational efficiency, and overall competitiveness for the firms involved. Understanding the relationship between M&A and firm performance is crucial for policymakers, investors, and managers making strategic decisions regarding mergers and acquisitions. By identifying the factors that drive successful M&A outcomes, this research can provide valuable insights for firms considering such strategic moves in Nigeria. Additionally, the study may offer recommendations for improving the effectiveness of M&A transactions and maximizing the benefits for all stakeholders involved. Overall, this research aims to enhance the understanding of the dynamics between mergers and acquisitions and firm performance in the Nigerian context. By examining both quantitative financial data and qualitative insights from industry professionals, this study seeks to provide a comprehensive analysis of the impact of M&A activities on the performance of firms in Nigeria.

Project Overview

    STATEMENT OF THE PROBLEM

In the high confusion and tumults of the modern business environment globally, economic hardship has affected most compared and industries are at the edge of distress, some have flowed while others manage to keep afar.

However, the effect of bad economic situation on companies in Nigeria warrants the need for merger and acquisition- while some companies merged or acquired so as to build a strong capital base and those that have strong capital base are searching for safe, profitable and efficient ways to employ the capital base. Mergers or acquisitions to enable them respond to the challenges of present business environment, meet up with the intensive competition in the global frame work and to build up enormous financial strength for unviable companies, same others acquire or merger to diversify into Nero markets, increase market share, expand product line, maximize financial potential, achieve technological success.

Hence, the completion of a merger does not ensure the success of the resulting organization, indeed, many mergers (in some industries the majorly) result in a net loss of value due to the problems of firm performance correcting problems caused by incompatibility, whether of technology equipment or corporate culture adverts resources away from new investment and this problem may be exacerbated of inadequate research of by concealment of losses or liabilities by one of the partners.

Overlapping subsidiaries or redundant staff may be allowed to continue creating inefficiency and conversely the micro management may cut too many operations or personnel, losing expertise and disrupting employee culture.

These problems are similar to those encountered in takeovers for the merger not to be considered a failure must increase shareholder value faster than the companies were separate or prevent the deterioration of shareholders value more than the companies were separate by identification, the specific problems that could emanate from mergers and acquisition activities are poor strategic ationa1e, mismatch of cultures, difficulties in communicating and leading the organization, poor integration planning and execution, playing too much for the target company, slow post merger integration, culture clashes can lack of appropriate risk management strategies.

1.3     OBJECTIVES OF THE STUDY

The broad objective of this project is to investigate the impact of mergers and acquisition in firm performance in Nigeria.

However, specific objective are as follows:

1.     to evaluate the effects to mergers and acquisition on performance of selected banks.

2.     To determine the influence of mergers and acquisition on asset base and work performance

3.     to identifies the impact merger and acquisition on profit and value of firms performance

1.4     RESEARCH QUESTIONS

A past from the research objectives, research questions further delineate the boundary of the research and give if an overall direction. For this study, the following are the major research questions.

-       How has mergers and acquisitions promoted better transparency and accountability in Nigeria’s financial service sector?

-       To what degree has mergers and acquisition contributed to the economic and financial development of asset base and performance? Merged or acquired.

1.5     SIGNIFICANCE OF THE STUDY

With the recent increase in the incident of investigation and bankruptcy of company together with dwindling economic situation of the country, there is need for the examination: f the effect of business mergers and acquisition in the performance of the Nigeria business organization, it is however believed that with the study of the companies that are involved be able to assess the means of survival, one would be able to access the profitability of the strategy being widely adopted in the Nigerian economy as a growth and survival strategy.

It will adequately consider mergers and acquisition result in banks redirecting their focus from deposit mobilization to asset creation increase in customer contain prove. It is also of critical significance to explain the concentration of qualify human capital instead of the current dissipation over a large numbers of banks

1.6     SCOPE OF THE STUDY

Mergers arid acquisition has become one of the fashionable surviving strategy for many companies it is therefore the intention of this study to investigate the effect of mergers and acquisition on the performance of UBA, First Bank, Stanbic IBTC And Access Bank. Also this study covers the period from 2008-2013

1.7     RESEARCH HYPOTHESIS

Based on the problems states above the following hypothesis is therefore formulated?

Hypothesis 1

Ho:   mergers and acquisition has not fostered higher market value of forms stock

Hi:     mergers and acquisition has fostered higher market value of firms stock.

Hypothesis 2

Ho:   there is no significant difference between asset base and work performance in selected banks that have merged or acquired

Hi:     there is significant difference between asset bas and work performance in selected banks that have merged or acquired.

Hypothesis 3

Ho:   the profitability of selection banks are not dependent on mergers and acquisitions

Hi:     the profitability of selected banks are dependent on merger bank acquisition.

1.8     LIMITATION OF THE STUDY

The merger constraints or limitations suffered by the research is high cost associated with collation of data coupled with time shortage as well unavailability of relevance materials, non corporation of employees in selected banks.

With these entire problems notwithstanding. It is hoped that the study will satisfy its objectives. This would hopefully lead to improved thought processes and output, and should be reflected in better banking product offerings, better resources management and new ways of doing things. Invariably, shareholder, consumer, customer, student and government in understanding the effect of M and A’s on firm-performance. It is in the light of the foregoing that the subject of this study is considered very significant.