Effects Of Mergers And Acquisitions

Decent Essays
Mergers and acquisitions happen throughout the world in every sector, M&A’s happen for a number of different reasons with the most frequent reason being the belief that synergies exist, which by principle denotes that two companies merged together creates a bigger company which in turn means the value of the new company will be greater than either of the two companies would be when operating solely on their own. There are a number of other motivators for companies to view merging together as being a good move and some companies will be determined to partake in an M&A even if it means they have to largely restructure their processes and aims within the new entity created.

M&A’s are becoming an increasingly common theme around the world and
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1.2:- Aims & Objectives

The aim of this report will be to investigate how mergers and acquisitions effect shareholders. This will be conducted by looking at relevant theories, market data and secondary research of whether a merger was successful and to what extent. To be able to do this the report will look into EE’s merger of Orange and T-Mobile a merger within the retail sector and give a judgement on whether the merger was successful in a number of different ways.

The report will also analyse the value of the companies in questions shares pre and post merger and the potential reasons that could have caused the deal to create value, destroy value or have no worthwhile effect for the shareholders of the
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In the second chapter of this report a literature review will be carried out which seeks to briefly discuss the three types of merger, theories that are relevant to this subject area and look into studies that already exist on M&A’s.

Chapter three will be looking into the research methods that will be used to conduct the investigation which will be purely secondary research as primary research was unable to be collected for the reports purposes. Research that is used will be specified in this chapter and also limitations will be provided in order for a more clear view of how pure the report is, from this chapter results will be found and discussed in chapter

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