Research proposal - Coursework Example

AC2040: Individual research proposal Module Research in Accounting and Finance Module AC2040 Assignment Impact of the financial crisis on M&A in the UK Student No: u0905794 Content page 1.0 Abstract………………………………………………………………………………3 1.1 Introduction…………………………………………………………………………..4 1.2 problem statement ….. ………………………………………………………………5 2.

1 Primary objectives of the research…………………………………………………..5 2.2 Motivation for study……………………………………….………………………5 3.1 Research objectives………………………………………………………………….6 4. Research questions and/or research hypotheses…………………………………….6 5. A review of the relevant literature……………………………………………………6 6. The importance of the proposed research…………………………………………….

7 6.1 Reasons behind the failure of mergers………………………………………..8 6.2 Benefits of some mergers………………………………………………………8 7. The proposed research design, method of data collection and analysis……………….9 7.1 Method of Collecting data……………………………………………………10 1.0 Abstract. This research proposal project is mainly aimed at the reasons behind the failure of merger and acquisition in light of the current recession, one of the key reason companies implement merger and acquisition for the faster growth or to expand the business in the home or foreign countries, many companies has already succeeded through M&E, however there are also many companies failed to achieve expansion of their business.

This report looks at the reason behind these failures of M&E because of recession and also looks at how any external macroeconomic factor affect the success of M&E. for this research purpose secondary data have been used. Successful M&E and failed M&E are analyzed to identify key factors of mergers; final part of this report suggests the issues need to be considered before agreeing to merger and acquisition. 1.1 Introduction. Research is defined is a process to increase or revise current knowledge by discovering information or to reach a conclusion.

Research can be used for many purpose, such as, to identify if there is a need for new product, find out employee motivation, or it can be used to find out if a project is going to be a success or failure etc. the finding in this research will be used by various stakeholders once it concluded, therefore, if it is essential that the researcher uses accurate data to arrive at conclusion 1.2 Problem statement. This report is designed to identify mains reason behind merger and acquisition failure and the macro factors affects the success of merger and acquisition, what management should do before making merger and acquisition agreement. 2.1 Primary objectives of the research.

Primary objective: The main goals of this research is research in merger and acquisition area and identify and investigate main reasons behind the failure of merger and acquisition, especial attention will be given to newly acquired merger and acquisition companies to identify their success or failure behind M&E, under this objective this research paper is going to consider the disadvantages of these mergers. Another primary objective is the secrete success behind some merger, by this this research paper is going to look into, adversely the advantages of mergers and acquisition, 2.

2 Motivation for study Mergers and acquisitions are the common growth strategy that the organization are adapting to expand the business, the companies are expecting synergy effects in considering the mergers and acquisition, however there are many mergers and acquisition failed to achieve the desired objectives. This research is undertaken to find out why the mergers and acquisition fails, and the impact on the origination as a result of mergers and acquisitions 3.1 Research objectives Secondary objective would be to analyze the macro economic factors that contribute to the failure of M&E, under this objective I am going to consider some of the possible solutions to the problems that results into failure.

Another secondary objective is to consider the secrets of success to most mergers, give some of the macro-economic factors behind the success of failure of some mergers. 4. Research questions and/or research hypotheses Before we venture deeply in this research paper, it is rather very prudent to come up with some of the relevant research question that we expect to be answered by the end of these researches. Below are some of the research questions. Research questions 1. Some of the main reasons behind the formation of most mergers and acquisition? 2. What are the reasons behind the failure of some mergers and acquisition? 3. What are some of the reasons for success for most mergers and acquisition? 4. What are some of the advantages and disadvantages of some mergers and acquisition? 5. A review of the relevant literature.

An online article by finance.mapsofworld.com about the reason behind the formation of most mergers and acquisition. Mergers and acquisitions and the takeovers have constantly kept interest of most economists and scientist alive. Most Mergers might prove very beneficial varying on the strategies they adopt, but it is very inappropriate to conclude that all mergers are successful. There exist several reasons for the formation of mergers and takeovers. For example, one specific company might be very good at the administration as compared to another company which is good at operations or marketing strategies.

If the two expertise are is amalgamated, the result is a superb synergy. New company is initiated as a result, having potential higher and very superior to the individual companies previously. Through the application of the rules of synergy efficiently, merger can be a success. Other reasons for the formation of most mergers include: To enhancing company productivity. A general tendency, that the companies merging would monopolize the whole market, thus ousting others. Some are formed due to Political factors.

In order to trim down subsequent expenses and elevating the revenues. To improve sufficiency to operate. Most Hindrances are always in the form of inadequate investment capacity, stiff competition as a result of the company that are unable to keep pace with the other competing companies. In that case, the subsidiaries might find it wise to merge with their parent company for better productions. 6. The importance of the proposed research. There exists several importance and relevancies of this research; first of all, it looks at the reasons behind the failure of many mergers, the success behind some of the mergers, the advantages of mergers, the disadvantages of mergers.

First this research paper will consider the above importance in the nature of their sequence. Reasons behind the failure of mergers Ignorance as the companies to a merger or rather the acquisition are not able to exchange commercially delicate information earlier to before the formation of the common ownership, there exist enough critically significant and legally tolerable preparation work in order to sustain an integration team occupied for many months just before the day one. Team resourcing, the Resource that are always required are more often than not underestimated.

It might take three to four months in order to release the champ players from the subsequent business to link the integration team, discover a backfill for the parties, assign contractors to seal the gaps and the set up the contractors infrastructure. Almost all the mergers start this too late and are not prepared to work on it once that deal is considered completed. Poor governance, Absence or lack of clarity as to the party who should decide what, and no clarified problem resolution criteria.

By Integrating organizations, a myriad of issues are brought up which need proper and timely resolution otherwise the project might come to a sudden halt. To add on that the author of the article states clear is that: speed matters, not unless with a prudent decision making process. Weak leadership by bringing together two organizations can be compared to sailing through a very heinous storm: one need a very strong and competent captain, one whom everyone trusts to lead the ship to the prescribed destination, one who projects energy, clarity, enthusiasm, and communicates that energy to its passengers.

Benefits of some mergers Benefits of M&A are manifold. M &A can and do generate a lot of cost efficiency via the economies of scale, and can and do improve revenue via gain in the market share and through tax gains. Some of the principal benefits from M&A can as well be listed as an elevated value generation, elevation in the cost efficiency and notable increase in the market share Greater Value Generation, M & A frequently concludes into an increased value generation for the common ownership.

It is an expectation that shareholder value of the firm that merged be higher more than the the entire sum of shareholder values of the mother companies. Generally speaking M&A do succeed in the generation of cost efficiency via the implementation of the economies of scale. Gaining Cost Efficiency as the parties come together through M&A, the resultant company does enjoy the benefit in terms of the cost efficiency. Increase in the cost efficiency is interfered with through the procedure of M&A.

This is as a result of mergers lead to the enjoyment of the economies of scale. This as a result enhances the cost efficiency. While the mother firms amalgamate forming bigger new firm their economic scale of their operations of the resultant firm increases. While the output production elevates there exists possibilities of the cost per unit of production coming down 7. The proposed research design, method of data collection and analysis. I have categorized the research data into primary and secondary data.

I have generated the primary data using data gathering procedures and techniques. I have generated the Secondary data with others and will include the case materials, data-sets, and manual or computer databases published by various public and private organizations or maybe the government departments In this research I used the below method of data collection 7.1 Method of collecting data Questionnaire Open ended questionnaire Closed questionnaire Interviews Works Cited COYLE, B. (2000). Mergers and acquisitions.

Chicago, Glenlake Pub. http://search.theebscohost.com/login.aspx?directtrue&scopesite&dbnlebk&dbnlabk&AN=52734. WESTON, J. F., & WEAVER, S. C. (2001). Mergers and acquisitions. New York, McGraw-Hill. http://search.ebscohost.comlogin.aspx?directtrue&scopesite&dbnlebk&dbnlabk&AN=63213. AUERBACH, A. J. (1988). Mergers and acquisitions. Chicago, University of Chicago Press. ROMANEK, B., & KRUS, C. M. (2002). Mergers and acquisitions. Oxford, Capstone. http://search.ebscohost.comlogin.aspx?directtrue&scopesite&dbnlebk&db=nlabk&AN=71323.

FINKELSTEIN, S., & COOPER, C. L. (2010). Advances in mergers and acquisitions. United Kingdom, Emerald. http://site.ebrary.com/id/10445340. BRYER, L. G., & SIMENSKY, M. (2002). Intellectual property assets in mergers and acquisitions. New York, Wiley. http://search.ebscohost.comlogin.aspx?directtrue&scopesite&db=nlebk&dbnlabk&AN=74243. BUONO, A. F., & BOWDITCH, J. L. (1989). The human side of mergers and acquisitions: managing collisions between people, cultures, and organizations. San Francisco, Jossey-Bass Publishers.

SHERMAN, A. J. (1998). Mergers and acquisitions from A to Z strategic and practical guidance for small- and middle-market buyers and sellers. New York, AMACOM. http://search.ebscohost.com/login.aspx?directtrue&scopesite&dbnlebk&dbnlabk&AN=2045. REZAEE, Z. (2001). Financial institutions, valuations, mergers, and acquisitions the fair value approach. New York, John Wiley. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=117511. ROCK, M. L. (1987). The Mergers and acquisitions handbook. New York, McGraw-Hill.