Survival Strategies for Businesses, the Role of Mergers and Acquisitions.
Abstract
This project work is geared toward ascertaining critically the role(s) of mergers and acquisitions among the survival strategies for businesses.
It first examined businesses, the impact of businesses on the economy, strategies for business survival and the role of mergers and acquisitions.
In recent years, the number and the transaction amounts of mergers and acquisition both domestic and cross – border, have increased rapidly in virtually all sector of business activity.
Some recent changes in the business environments of many countries, include towards deregulation, market liberalisation and increasing globalisation, have facilitated the wave of merger and acquisition.
Thus the quest for globalisation and growth in the Nigeria financial sector and privatization of government companies gave rise to corporate mergers and Acquisitions.
Introduction
Background of Study
We live in a world that is characterized by changes from political change to economic change, climatic change, educational change and social change. Interestingly, each change comes with transformation of society depending on how the change is managed.
Each change emerges as either a threat or opportunity to the business environment. Hence our business environment is as erratic and turbulent as the political environments in the developing countries due to constant change in polity and the resulting change in policy.
Business is simply an organization of people and material resources involved in buying, producing and selling of goods and services. Normally a business will go through the process of birth, growth, stabilisation, decline and death.
Several factors including human skills do contribute and determine the success or failure of a business. But failure signals decline and eventual death.
Therefore no business organization would want to experience a decline let alone death hence intensive effort is made to arrest and manage any un- progressive change effects in the business operations.
Business includes all profit oriented ventures such as banking, manufacturing, importation, distribution, telecommunication and other servicing industries.
References
Ahmed Legal framework and procedures for mergers and acquisition in Nigeria. A symposium sponsored by the Securities and Exchange Commission in Lagos 1985 P.7.
Akwamiokhor Mergers and Acquisition. The Nigerian Experience, A paper presented at a Seminar organised by NAL Merchant Bank Nigeria Plc in Lagos 1989 P.2.
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