ABSTRACT
This study ascertains the influence of merger and acquisition as a
growth and survival strategy. The crisis facing so many corporate
firms as a result of capital inadequacy has led to the collapsing of
so many firms. As a result, it is the objectives of this study to
evaluate the impact of merger and acquisition on growth and
survival of corporate firms using banks as study, to ascertain
whether the banks have grown and survived as result of merger
and acquisition.
A survey research method was applied. Data were
collected through primary and secondary sources. The population
samples were drawn from two groups i.e. Access Bank and First
City Monument Bank. A judgmental sampling technique in which
45 and 50 of each samples were selected was adopted for
convenience sake.
Data were analyzed using “Z” test as an
inferential statistics for testing of differences in perception of
participants on merger and acquisition as a means of growth and
survival and improving its earning per share. Ratios of the banks
used for study were employed for evaluation purposes. A regression
analysis was adopted to express the quantitative relationship
among variables i.e. Return on Capital Employed (ROCE) and
Earning per Share (EPS), used in this study -the financial ratios for
pre-merger and post-merger. The result obtained after the analysis
showed that merger and acquisition act as a means for growth and
survival and improvement of earning per share of the banks. Based
on this, the study recommends that firms should re-train and reeducate
its employees on the new company’s culture so as to
ensure a smooth transition and improved processes.
