THE IMPACT OF MERGERS AND ACQUISITION IN NIGERIAN ECONOMY (2002 – 2005). A RESEARCH PROJECT MATERIAL ON ACCOUNTING
This project is in partial fulfillment of my Ordinary National Diploma (OND) in Accountancy.The project topic “the impact of mergers and cquisition in Nigerian economy”, will help in bailing out an aching company from liquidation and bankruptcy in Nigerian business circle.For the purpose of quick understanding of the topic, the research work has been carefully organized in each chapter and it is hoped that the chapters and paragraphs would be studied in order of presentation.The first chapter is devoted to a lucid introduction of the topic while the second chapter deals with review of the study and its impact in Nigerian economy. Chapter three deals with the findings that were observed from the analysis and interpretation of data collection.
1.1 BACKGROUND OF THE STUDY
The matter of mergers and acquisition first emerged in the “Nigerian Capital Market is 1983” and it has become charged with controversies and conflicting views.
Mergers and acquisition respectively is the combination of two or more formerly independent business unit into organization with a common ownership and management while the later is all business and corporate organization, and operational devices and arrangements by which the ownership and management of independently operated properties and business are brought under the control of a single management.
1.2 STATEMENT OF PROBLEM
Mergers and acquisition scheme is a way of pulling out an ailing company from the wood.
The study therefore stated reasons for which made headway from the fact that investors and the general public are not sufficiently experience to appreciate the importance of mergers and acquisition. Such reasons are stated below:
(b) To gain promotional projects
(c) To obtain monetary economic of scale etc.
1.3 OBJECTIVE OF THE STUDY:
Mergers and Acquisition scheme is a kind of business arrangements in Nigeria, though it has been in use in the United Kingdom and the United States of America for decades.
The fortune of many founder owned companies tend to decline with the demise of the fund which may not have the technical skills to purchase management expertise.