Mergers and Acquisition as a Growth Strategy Of The Business Organizations:- Nwali Emmanuel I.

ABSTRACT

The study researched on mergers and acquisitions as a growth strategy of business organizations. The main objectives ofthe study is to examined the major effect of merger and acquisition on the growth of business organizations. To achieve the objectives of the study,expost facto research design was adopted. The researcher adopted secondary data in getting the required information. Annual report of Eco bank Pic was used for the period of 5years to ascertain the differences on profit after tax and earnings per share before and after merger and acquisition. In testing the hypotheses, difference oftwo mean was used. The findings revealed that there is a significant different in profit after tax ofthe bank before and after mergers and acquisition. The findings further revealed that there is a significant change in earnings per share of the bank before and after merger and acquisition. The researcher recommends that merger/acquisition is a strategic tool that must be cautiously applied and implemented. The maturation period ofthe merger must be allowed so that the financial records ofthe intending firms coming together can be properly scrutinized by the board of directors of each firm and the regulatory agencies.