Effects of Merger

Topics: Mergers and acquisitions, Royal Bank of Scotland Group, Financial services Pages: 17 (4530 words) Published: March 6, 2013
| | |Faysal Bank- | |Effects of Merger | |Organizational Behavior | | |

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We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. We would like to extend our sincere thanks to all of them.

We are highly indebted to Sir Mirza Sardar for his continuous support and guidance throughout the tenure of our project work.

We are also highly indebted to Sadiq Baloch for his guidance and constant supervision as well as for providing necessary information regarding the project & also for his support in completing the project.

We would like to express our gratitude towards Sir Mirza Sardar and our parents for their kind co-operation and encouragement which help us in completion of this project.

We would like to express our special gratitude and thanks to industry persons HR Manager (Hira Khandwala) and Finance Manager (Saira Farooqui) for giving us so such attention and time.

Our thanks and appreciations also go to our colleagues in developing the report and people who willingly helped us out with their abilities.


Merger of organizations is a major change that’s why it is necessary to focus the effects of this merger. Organizations are built and show their performance by the human resource and through their financial profitability. Therefore, it is important to find out the impact of merger on the employees and on the financial position of the company. The present study aims to study such impact in the form of employee perception, communication, change management and human resource management. The financial profitability was analyzed through evaluating the company’s financial statements, capital structure, dividend policy, leverage and other aspects which highlight the effects of the merger.

Keywords: Merger; Employee Perception; Communication; Change Management; Human Resource Management; Financial Statements; Capital Structure; Dividend Policy; Leverage.


In today’s competitive world, mergers and acquisitions have gained popularity as important tools for improving the competitiveness of organizations. Mergers and acquisitions help in broadening the portfolio of a firm, facilitate corporate restructuring, help the firm enter new markets and capitalize on their economies of scale. Merger is when integration of two firms takes place through the purchase acquisition or the pooling of interest. The difference between a merger and a consolidation is that there is no new entity created as a result of a merger.

Over the past decade, the banking industry has experienced an unprecedented level of as mergers and acquisitions among large financial institutions have taken place at record levels. Mergers and acquisitions have become common in the banking industry after the world has seen some of the dynamic world crisis such as Asian Financial Crisis. According to the literature present, bank mergers are usually based on the belief that consolidation benefits in terms of reduced expenses, increased market power, achievement of scale and scope economies and reduced...
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