Factors Affecting Merger and Acquisition Evaluation in Banking Sector

This dissertation delves into the factors influencing merger and acquisition (M&A) evaluation strategies within the banking sector, highlighting the critical role of the banking industry in a country's economic stability. It explores how M&A serves as a vital tool for international market expansion within this sector. The study encompasses various sections, including an introduction outlining the research background, significance, aim, questions, hypotheses, and organizational structure. The literature review provides a theoretical evaluation of the research topic, drawing upon existing sources to identify factors impacting M&A success and different evaluation strategies. A deductive research approach is employed, testing hypotheses using statistical tools on data collected from 46 employees across different organizations, utilizing probability sampling to minimize bias. The research combines statistical data analysis and literature review to assess both conceptual and numerical data. The conclusion underscores the significant impact of both internal and external factors on M&A evaluation strategies in the banking sector.

Running Head: MERGER AND ACQUISITION
Factors affecting merger and acquisition evaluations strategies in the banking industry

MERGER AND ACQUISITION ii
Abstract
This study is emphasized on evaluating factors which affect acquisition and merger evaluations
strategies in banking sector. Banking industry could play an imperative role in affecting economic
situation of country. In the baking industry, merger and acquisition is an imperative tool to expand the
market at the international level. In this, many sections has been discussed, as it can be related to the
introduction, literature review, and research methodology, data analysis section, conclusion and
recommendation. The introduction chapters could consider certain elements named as research
background, research significance, research aim, and research questions, research hypothesis and
organizational structure. The research background section is imperative to comprehend the current
situation of merger and acquisition. This section is imperative to reach at the reliable conclusion. The
research questions is supporting to understand what will be covered in the study. A Literature review
section could support to theoretically evaluate research matter by entailing existing sources and
achieve the research aim. In this section, the many factors has been discussed that might affect to the
merger as well as acquisition. This section has also supports to understand different evaluation
strategies of the merger and acquisition in the banking sector that would be vital to increase success
of merger and acquisition implementation. Further, researcher has practised the deductive research
tool to conduct this study as it facilitates to develop the hypothesis and prove and reject them by
considering the statistical tool. This study has been conducted on the 46 employees of different
organization to get the data in the favour of research matter. Probability sampling tool is practised by
researcher due to eliminating the biases from the study. This study has considered statistical data
analysis tool and literature review method to evaluate conceptual as well as numerical data that would
be effective in completing the research aim in an appropriate way. Moreover, conclusion section
demonstrated that internal as well as external factors could affect to the merger and acquisition
evaluation strategies in the banking sector.

MERGER AND ACQUISITION iii
Table of Content
Abstract.................................................................................................................................................. ii
Table of Content.................................................................................................................................... iii
Introduction, Research Aim, Objectives and Research Questions:.......................................................vi
Research background....................................................................................................................... vi
Research significance....................................................................................................................... vi
Aim of research................................................................................................................................. vi
Research questions.......................................................................................................................... vii
Research hypothesis........................................................................................................................ vii
Organizational structure................................................................................................................... vii
Literature review.................................................................................................................................... x
Introduction........................................................................................................................................ x
Factors affecting merger and acquisition evaluation strategies to the banking industry.....................x
Conclusion..................................................................................................................................... xviii
Research Design and Methodology.................................................................................................... xix
Rationality of research methodology............................................................................................... xix
Research Onion Framework............................................................................................................ xix
Research Approach......................................................................................................................... xx
Research Design............................................................................................................................. xxi
Research Strategy........................................................................................................................... xxi
Data Collection Method.................................................................................................................. xxii
Sampling Method........................................................................................................................... xxiv
Data Analysis Method.................................................................................................................... xxiv
Research Limitations...................................................................................................................... xxv
Store.............................................................................................................................................. xxvi
Ethnocentrism................................................................................................................................ xxvi
Ethical Consideration..................................................................................................................... xxvi
Survey through questionnaire....................................................................................................... xxvii
Findings/Results:................................................................................................................................ xxx
Conclusion and recommendation...................................................................................................... xlvii
Conclusion..................................................................................................................................... xlvii
Recommendations........................................................................................................................ xlviii
References............................................................................................................................................ lii
Gender
Age
Experience
Merger and acquisition is imperative way for increasing the external growth
Mergers and Acquisitions (M&A) is being major force in the changing atmosphere
Mergers and Acquisitions (M&A) could be used as the strategic plan in the organization

MERGER AND ACQUISITION iv
Successful competition in the global market could be relied on the abilities got in the timely as well as
well-organized fashion by Merger as well as Acquisitions
which method is more suitable for the business performance
Merger and acquisition is used to maximize shareholder value
Strategies of Merger and acquisition is used for operating the business
Mergers and Acquisitions could affected to the overall performance of employees
factors affect more to merger and acquisition
Gender
Age
Experience
Merger and acquisition is imperative way for increasing the external growth
Mergers and Acquisitions (M&A) is being major force in the changing atmosphere
Mergers and Acquisitions (M&A) could be used as the strategic plan in the organization
Successful competition in the global market could be relied on the abilities got in the timely as well as
well-organized fashion by Merger as well as Acquisitions
which method is more suitable for the business performance
Merger and acquisition is used to maximize shareholder value
Strategies of Merger and acquisition is used for operating the business
Merger and acquisition affect to the business performance
Mergers and Acquisitions could affected to the overall performance of employees
factors affect more to merger and acquisition

MERGER AND ACQUISITION v
Introduction, Research Aim, Objectives and Research Questions:
Title: Main title of the research is “Factors affecting Acquisitions and mergers evaluation strategies in
the banking industry”.
Research background
In current business era, banking sector could need to gain their understanding of the research matter.
Merger and acquisitions could have direct impact on productivity of organisation. Different kinds of
factors that are considered by the firm as it might affect the merger and acquisition named cultural,
human resource, economic, and technological factors. The merger could facilitate to two firms to
combine with each other for operating their business at a large scale and make higher competitive
advantages (Bauer and Matzler, 2014). The acquisition method could enable one big organization to
purchase another organization that has a less net profit. It is stated that the Mergers and acquisitions
tool are different from each other but the motive of both methods is to make higher competitive
advantages (Cevik Onar, et al., 2014). It is addressed that merger and acquisitions are an imperative
technique as it facilitates to the firm to operate their business at the large scale and make their unique
image in the marketplace (Thompson, et al., 2015). It is illustrated that the firm could gain their depth
knowledge which method will be more effective for the firm before implying it in the organization. It is
illustrated that depth evaluation of the tool could enable to get benefits. It is also examined a merger is
an effective tool for the organization to meet its organizational purpose (Garzella and Fiorentino,
2014).
Research significance
This research is effective for gaining understanding about merger and acquisition that will be
imperative in operating business process and make their career in the HRM. It could be effective for
increasing depth data towards different factors that might affect a merger as well as acquisitions. This
report will lead to comprehending strategies that might be practiced by the firm for eliminating issues
that will be occurred during implementation of merger and acquisition. This study will also be
imperative for the researcher as it supports to make the career of the researcher in the HRM
department wherein the merger and acquisition are possible.
Aim of research
Key aim of this investigation is to analyse and evaluate imperative issues in current banking business
firms that are related with strategic planning of acquisitions and mergers. In order to attain research
aim, research scholar would achieve certain objectives, which are described as below:
 To discover the conceptual understanding of the merger and acquisition
 To critically evaluates factors that affecting the merger and acquisition strategies in banking
strategies
 To recommended strategies for effectively implementing the merger and acquisition in the
banking industry
Research questions
 What are the factors that are affecting the strategic planning of the mergers and acquisitions
in contemporary banking business organizations?

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Research hypothesis
 There is a positive relationship between factors affecting evaluation strategies Acquisitions
and mergers evaluation strategies and performance of the banking industry
 There is no relationship between factors affecting evaluation strategies Acquisitions and
mergers strategies and performance of the banking industry
Organizational structure
The organizational structure can be essential for comprehending issues of research study in depth.
The organizational structure could entail certain elements that were described as below:
Chapter 1: Introduction
Chapter 1 is introduction part of the organizational structure that is effective for gaining the
understanding about certain elements, which might be necessary for conducting any study named as
the background of research, question of research, aim and objectives of research, structure of
dissertation (Cartwright, and Cooper, 2014). In this, it is founded that aim and objective of research
might an essential section for investigation as it offers a path to the investigator to conduct their
investigator in directing and work on effectively. It is stated that the research question could also be
essential for gaining theoretical data with respect to research dilemma. Research questions can also
supports investigator to find a solution on the specified concern (Cavusgil, et al., 2014). The research
background support to comprehend what is the concern in depth. It could increase the awareness of
the investigator towards the research dilemma that would be effective in getting a positive result
towards the research matter. It could facilitates the investigator to know perspective of doing
business. It can be illustrated that the last section of the introduction could demonstrate the
organizational structure that supports to understand what we will be covered in the study. Thus, it can
be evaluated that the interdiction section is effective to get higher competitive advantages (Ansoff, et
al., 2018).
Chapter 2: a Literature review
Literature review section is the second section of study that is effective to comprehend the opinion as
well as a researcher of the different authors on the same topic. It could also be imperative to
comprehend how the literature review data is collected (Gamache, et al., 2015). For completing this
section, the literature review sector could consider different sources such as academic publication,
journal articles, authentic websites and other sources. Further, researcher has entailed such sources
and collects the data related to current research concern (Galpin, 2014). Data is gathered by entailing
reliable sources of the research result. It is evaluated that the investigator is deeply evaluated factors
that might be affected by outcome of research. Researcher should have proper understanding of
methods and ways that would be effective for attaining appropriate outcome with respect to research
concern. It is also examined that this section mandates to comprehend the different authors and
researcher and consider it in investigation for increasing reliability of firm (Lasserre, 2017).
Chapter 3: Research methodology
Third chapter of study is research methodology as this section facilitates the researcher to
comprehend different methods, which might be practiced in the study to pool feasible data about
research concern and obtain higher competitive benefits. These tools were known as the approaches

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of research, strategies of research, data gathering tool, data analysis technique, research
philosophies, ethical consideration, and limitation of research (Nelson, 2018). These are essential
aspects that support in completing the task of research study by using existing sources. Research
methodology section will mandate to the investigator which strategies, methods, and tools could be
effective for the study. It also facilitates to know the depth evaluation of each tool that supports to
make a decision toward the research selection of investigation tool for running a business and
increase possibilities of getting a higher outcome. This section will also be imperative to operate the
overall business in one direction and get positive responses (Hryckiewicz, 2014).
Chapter 4: Data analysis and findings
In the data analysis and findings section, the research scholar would be capable to analyze pooled
data by considering different sources named as literature review and statistical data analysis tool. In
this investigation, a statistical data analysis tool is a prominent tool to assess numerical data of
investigation that will be collected by utilizing a survey through questionnaire method. Literature
review method would be used to analyze the non-factual data of the study and obtain the targeted aim
of investigation (Jaberidoost, et al., 2015). It is illustrated that the researcher has considered normally
both when an investigation has subjective nature. This study has needed factual information hence
both statistical and non-statistical data analysis tool will be practiced as it would be significant for the
functioning of business in one direction and meeting the aim of the study effectively. It can also be
illustrated that this section could present the data by graphs chart, and table and it could be done by
considering MS-excel software program. This software could support to save the cost and time of the
study and effective for getting a reliable outcome (Berger, et al., 2014).
Chapter 5: Conclusion and recommendation
Conclusion and recommendation is the last section of investigation as it is practiced to present overall
study in a concise form. This chapter can be essential for gaining knowledge of different methods,
which might be imperative to obtain higher competitive benefits (Kim, et al., 2015). It is examined that
the conclusion section concise overall report that will be effective to comprehend which it entails in
this study what was the outcome of doing this study. The recommendation section is also imperative
as it facilitates the researcher for obtaining research outcome. In the research, the recommendation
part of the study is vital for conducting an investigation in upcoming period (Grant, 2016).

MERGER AND ACQUISITION viii
Literature review
Introduction
Introduction chapter is imperative for pooling suitable data in the context of research matter. Current
paper is supportive to gain an understanding of the meaning and concept of the merger and
acquisition. This report is also effective for comprehending different strategies that might be used by
the banking industry to overcome the factor affecting merger and acquisition. IT could be effective for
working in the HRM department in the upcoming period and support to have a decision in favor of the
study issue. It is also essential for accomplishing task of organization.
Factors affecting merger and acquisition evaluation strategies to the banking industry
According to Zhang et al. (2015) organization has started to work hard for accomplishing their
specified work in the least time and cost. Each organization has made a basic goal for meeting the
aim of the study and increase profitability. The organization has also decided on the possible growth
that will be accomplished in the upcoming period. Ahammad (2016) stated that a firm could value the
internal as well as the external factor for increasing the possibilities of getting positive responses. The
internal development could be accomplished either by introducing procedure and innovate fresh
goods and services through increasing the ability to expand the business and enlarging the business
size to enhance the capability of business organization. It is evaluated that the firm could improve the
sale of the firm in the least time and cost. It is illustrated that the external growth could be
accomplished by the merger as well as acquisition.
In support of this, Molle (2017) illustrated that Merger and acquisition is an imperative way of
increasing external growth. In the recent international economy, acquisition and merger are being
increasingly practiced the world over as approach in accomplishing the larger asset base caused of
entering into new markets. It will also be effective for effectively entering into the new market and
getting higher competitive benefits. It could be effective in creating higher benefits by implying this
method in the business process.
In opposed to this, Ferreira (2014) addressed that Mergers and Acquisitions tool is a tool that assists
to the organization to emerge the business and support the company to conduct processing of
business and attain more competitive benefits. In addition, mergers and acquisitions are practiced to
meet sustainable benefits at the corporate level. It is evaluated M&A (Mergers and Acquisitions) is
being a chief source to alter the atmosphere. It could support the organization for competing with the
domestic as well as an internal level. Merger and acquisition are one of the vital methods as it assists
to improve the company structure and facilitates getting a higher competitive outcome.
Malik (2014) argued that the Merger and acquisition also emerge as one of the imperative technique
for the business which has a direct impact on the entire performance of business. Further, Indian
organizations are practicing Merger and acquisition as one of the growth strategies. In modern era of
business, this tool is imperative for an organisation to implement acquisition, a merger in order to
operate the business and get a reliable outcome. Consequently, these methods might be prominent
for operating the activity of business and making a reliable outcome.
In support of this, Jordao (2014) illustrated that the organization could decline the probability of
turnover from the working place. It is evaluated that Mergers, Acquisitions strategy could be effective

MERGER AND ACQUISITION ix
to make sound business development and higher business progress. It is stated that effectively entry
into a new market and make a higher profit for the long-term. It is effective for the successful
competition that the organization needed to improve their capabilities towards the implication of
merger and Acquisitions (M&A).
Angwin et al. (2016) stated that a merger could enhance efficiency and productivity of the firm. This
could be effective for increasing the shareholder value mere as it would lead to obtaining the higher
profitability of the organization. It is illustrated that the merger can be vital for accomplishment of
organizational activities. This is quite difficult for the organization to directly achieving targeted aim of
research matter. Moreover, Mergers, Acquisitions tool could be used as strategic concepts
incorporate to have decision effectively. Combination of business elements is an overall wonder. One
of the devices for solidification is mergers and acquisitions.
In support to this, Yan and Luo (2016) stated that the mergers and acquisitions in money related area
of India have all the earmarks of being driven by target of utilizing cooperative energies emerging out
of M&A process outcomes. Nonetheless, such supplementary changes in money related framework
might have some suggestions of exposed approach. It is obvious from different mergers and
amalgamations did by the Bank after its beginning in 1994. In any case, it is very clear by their activity
that it is a way of development for them. In oppose to this, Helfat and Martin (2015) illustrated that in
view of this announcement, we might want to display the applied structure for mergers and
acquisitions in India's unique situation. Systems for the merger, procurement, and amalgamation of
banking organizations are plainly characterized in segment 44(A) of the Banking Regulation Act 1949.
As per the Act, a financial organization should put a draft before its investors and the draft should be
endorsed by a goals gone by a greater part in number, speaking to 66% in estimation of the investors
of every one of the said organizations, present either face to face or as a substitute at a gathering
required the reason.
Paulet et al. (2015) stated that Vertical merger (VM) is a merger where one firm supplies its items to
the next. A vertical merger results in the solidification of firms that have genuine or potential purchaser
dealer connections. Level merger HM is the merger of at least two organizations working in a similar
field and in similar phases of procedure of achieving a similar ware or administration. It is also
founded that merger is could offer an best opportunity to the firm for giving an effective way to the
organization to leads their business function in one direction and sustain their position in the
marketplace for the long-term. Hence, an organization has tried to considered the merger as well as
acquisition in their business process.

MERGER AND ACQUISITION x
(Sources: Waemustafa and Sukri, 2015).
(Sources: Waemustafa and Sukri, 2015).
On the other side, Waemustafa and Sukri (2015) there are certain elements that are considered in
controlling of merger as well as acquisitions procedure. The communication is a factor that might
directly affect to management performance as it plays a vital role in dealing with others. Hence, this
factor might affect to result of merger and acquisitions. It could be effective for eliminating the stress
level from the organization. It is stated that communication is effective aspect as it facilitates to
decline skills of employees caused by mitigating the conflict and another issue.
Paulet et al. (2015) stated that merger is the process that encourages to the firm to operate the
business process in an effective way. The organization has used a prevention strategy for eliminating
stress by declining merger stress. It is evaluated that review of workforces that consists of modifying
the initial perception appraisal of the condition. It is examined that professional support could decline
the stress level. It is stated that merger activity could lead to comprehending the psychology of an
employee to identify the act essence.

MERGER AND ACQUISITION xi
In support of this, Koenig et al. (2014) illustrated that the favorable relation in the people combination
as well as fusion of cultures of organization. It is evaluated that the post mergers could support to
eliminate possibilities of mental health. The merger is an act that creates the stress in life of human
that could be eliminated by the acceptance of merger organizational culture for expanding the
business.
Goetz et al. (2016) argued that there are certain elements that affect to the merger process and
multiple organizational factors, which directly affect a merger as well as the merger process. It is
evaluated that the communication issue as well as their significance throughout the acquisition as well
as merger process. Moreover, the corporate culture their impact on the workforces if two organization
merge, the structural change as well as workforces reaction. Moreover, the stress issues could
directly impact on the merger and acquisition process in the environmental as well as higher stress
level. There are certain elements that might be considered by the firm named as corporate culture,
managing/strategy, change, stress, and communications. There are certain subsections named as
pre-merger and post-merger.
On the other side, Koenig et al. (2014) stated that three-stage model of the acquisition and mergers
which systematically that determined different human resources acts and problems. It is examined
that there are certain acts that are entailed in three stages. It is also illustrated that the department of
human resources, as well as leaders, are an imperative part of the business atmosphere with respect
to the obtain higher competitive advantages. It is also illustrated that the HR potential could bring
effectiveness in the dealing of the merger.
In oppose to this, Knechel and Salterio (2016) stated that organization could consider certain
elements named as swap ratio valuation, an announcement of swap ratio, fluctuation of share price,
and the announcement of merger decision, merger decision in the process of share due to getting
higher competitive benefits. It is also examined that the merger and acquisition could increase the
market share of organizational performance. It could increase the interest of shareholders towards
organizational performance. There are cetin elements that could be considered to improve the
financial; performance of the firm. It is also illustrated that mergers are generated by the organization
to increase the capability of a firm. There are different factors that might be considered by the
organization named as branch network, rural reach, better technology, customer base, and financial
ability. It is evaluated that controlling of the human resources as well as rural branches might be
challenging for the different culture of work.
Trichterborn et al. (2016) stated that the acquisition process is affected by different factors that could
affect the overall outcome. It is examined that the corporate approaches could be imperative for
avoiding uncertainty of the organization and support to get higher outcome. It is stated that knowledge
acquisition, as well as the subsequent organisational learning, were the effective desirable results by
considering the acquisition processes of the firm.
On the other side, Alessandri et al (2014) examined that corporate acquisitions could be affected to
the overall productivity of the research outcome. The acquisitions process could affect the overall
performance of the research outcome. From the above data, it is illustrated that the acquisition
process could positively impact on the performance of the organization. Moreover, post-acquisition

MERGER AND ACQUISITION xii
could affect to the codification. It is examined that the integration of two firms could effectively improve
the performance of the firm as well as it could also negatively affect the overall performance of the
firm. It is illustrated that there are two kind of approaches that are considered by the organization
named as corporate strategy as well as knowledge-based approach.
Zhu and Zhu (2016) stated that the international post-merger could affect the private sector of banks.
The organization could also manage the business process and support to make higher competitive
advantages. It is evaluated that effective integration management could consider certain elements
named as change management, communication, and organization. It is evaluated that the Integration
Manager could also be affected by the overall outcome of the research outcome. It is stated that the
integration manager could be affected by the overall outcome of the business process. It could affect
the firm for getting a positive result in favor of the research outcome.
In support of this, Sarala et al. (2016) illustrated that human resources practices could manage to the
cultural integration procedure in the post-acquisition as well as merger culture. It is also stated that
pervasiveness and growth of merger and acquisition could affect to the failure and success rate of the
firm. It is examined that human resources practices in the process of management as well as the
human resources practices to the merger and acquisition success.
According to Poulfelt et al. (2017), the key cause of company that enters into merger and acquisition
is to merge their control as well as, authority over the market. Furthermore, a merger is beneficial in
the context of synergy where, authority permits to increase the efficiency of the new entity as well as,
it creates the shape of return enhancement with cost savings. Moreover, economies of scale are
developed by sharing the resources as well as services. Union of two company leads in overall cost
reduction that gives competitive benefits. It could be appropriate as a consequence of increasing
purchasing power as well as, longer production runs. In support of this, Stiglitz and Rosengard (2015)
stated that risk can be declined by using innovative techniques to control financial uncertainty. A
company should consider technological development as well as, their dealing functions. Through
merger and acquisition of a small business with the unique technologies, a large corporation would
retain and grow the aggressive edge. The key benefit of a merger and acquisition is tax benefits.
Moreover, financial benefits may initiate mergers as well as, companies would highly develop the use
of tax-shields, use alternative tax advantageous, and gain monetary leverage.
On the other side, Erel et al. (2015) stated that the benefits and limitation of the merger as well as the
acquisition are relied on new short-term together with, long-term approaches with efforts. Since, there
are some factors like market environment, acquirement expenses, and shifts in business culture, and
transformations to financial power surrounding of capturing the business.
As per the view of Stiglitz and Rosengard (2015), merger and acquisition are disadvantageous in
terms of loss the proficient employees excepting employees in the position of leadership. This type of
loss unavoidably entails understanding about the business loss as well as, it would disturb the
exchange and would exclusively get replaced at a higher worth. Consequences of merger and
acquisition, workforces of the small merging company would need extensive re-competencies.
In contrast to this, Moeller and Brady (2014) stated that corporation would face different complexities
related to frictions as well as, an internal rivalry that can exist between employees of a united