Impact of Mergers and Acquisitions on Hiding Imminent Business Failures

Running head: CORPORATE ACCOUNTING
CORPORATE ACCOUNTING
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1CORPORATE ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Article 1: Bank Consolidation and Merger Activity Following the financial crisis of 2008: 2
Article 2: The Impact of Consolidation on the Performance of Banks in Nigeria:....................3
Article 3: Business consolidation and its impact on financial performance evidence from the
Ghana banking industry:............................................................................................................5
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

2CORPORATE ACCOUNTING
Executive Summary:
Mergers and acquisitions have become the norm of the financial system and survival in the
ever competitive and dynamic business environment. Be it the banking industry or any other
industry including transport, real estate entertainment, consolidation of business, has been
one of the most important measures for expanding businesses and saving failing businesses. It
has been seen that major businesses enter into consolidation deals for improving and
expanding their businesses or for saving any failing business from their eventual collapse.
With this in mind the following project report has aimed to look into the role of mergers and
acquisition of businesses with regards to hiding any kind of imminent business failures.

3CORPORATE ACCOUNTING
Introduction:
Mergers and acquisitions together form one of the most important aspects of
consolidation of a business. Mergers and acquisitions have been taking place among financial
institutions and various other businesses for well over a decade specially in the developed
countries such as the UK, USA, and many others (Economist.com, 2018). There are various
reasons which goes into play for the consolidation between businesses. Businesses engage in
consolidation for quite a number of reasons, such as for improving its marketing potential,
market share, reduction of the overall marketing costs. Companies have consolidated with
other companies and organisations for centuries together in many forms. Modern
conglomerates resort to consolidation for a variety of purposes, ranging from the reasons
mentioned above as well as for the purpose of hiding any business from failing in the near
future. In these kinds of scenarios, a strategic consolidation between the failing business
organisations with another business, eventually helps in saving the business from failing in an
untimely manner. In this report, a closer look has been taken into the various cases, where the
act of consolidation of two businesses have led to the hiding or stopping of an imminent
business collapse.
Discussion:
Article 1: Bank Consolidation and Merger Activity Following the financial crisis of
2008:
After the recessionary financial crisis, which had shook the world back in the, had
some sever long term repercussions felt across the banking sector of the United States. Many
of the banks of that period had failed due to the failures of the post crisis period and various
other reasons. From a whopping, banks in the 1980s, it had declined to a minimal 5600 as of
today (Serdar & Erel, 2013). During the period of 2011 to 2014, the United States had seen a