Overview of the Merger that Affect Business Performance and Shareholder Value

Running Head: OVERVIEW OF THE MERGER THAT AFFECT BUSINESS
PERFORMANCE AND SHAREHOLDER VALUE
OVERVIEW OF THE MERGER THAT AFFECT BUSINESS PERFORMANCE AND
SHAREHOLDER VALUE
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1
OVERVIEW OF THE MERGER THAT AFFECT BUSINESS PERFORMANCE AND
SHAREHOLDER VALUE
Table of Contents
Introduction................................................................................................................................2
Background of the Study........................................................................................................2
Research Aim and objectives.................................................................................................2
Literature Review.......................................................................................................................2
Research Methodology and Design...........................................................................................6
Expected Results........................................................................................................................6
Conclusions................................................................................................................................6
Reference....................................................................................................................................8

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OVERVIEW OF THE MERGER THAT AFFECT BUSINESS PERFORMANCE AND
SHAREHOLDER VALUE
Introduction
Background of the Study
The term merger is often used interchangeably with take-over as acquisitions, which
are used for referring to the situation where there are two are more organizations joins the
hand together and combine into one. It is done for availing the benefits of the combinations
as well as re-structuring that is in the form of the merger for facing the challenges of the
increased competition and achieving the synergy in the operations of the business. Moreover,
many of the companies are using acquisitions and mergers as an alternative for the growth for
the means for expanding the activities if the company. It is useful when the company desires
for make entry to the new markets or when the economy is generated by large scale. The
mergers are categorized as horizontal, vertical and conglomerate that is funded by the internal
or the external sources of fund (Howson 2017).
Research Aim and objectives
The main objectives of the study are find out the association of the major issues with
the pre and post situations of merger. In addition, the research will be based on the answering
the following questions:
 Does a merger create the value of the shareholders?
 What are the reasons for the failure of mergers?
 Does the way the funding is done to the mergers determines the success of the
organizations?
Literature Review
In the corporate world of 21st century, the important tools that are used by the
company for achieving the objectives of the specific business are mergers and acquisitions. It
happens when the assets and the liabilities of the two legalized company are combined for