IMPACT OF MERGER AND ACQUISITION IN NEPALESE FINANCIAL SECTOR FOR A BANK SURVIVAL
INTERNATIONAL AMERICAN UNIVERSITY
KING’S COLLEGE, KATHMANDU NEPAL
INTERNATIONAL AMERICAN UNIVERCITY
May 9, 2012
Title of the study:
"IMPACT OF MERGER AND ACQUISITION IN NEPALESE FINANCIAL SECTOR FOR A BANK SURVIVAL ".
Commercial banks have an essential role in the economy. One of their main duties is to collect funds from excess fund sectors and lend to customers with insufficient funds. From these financial intermediary activities, they have an important role in determining the amount and distribution of credit in the economy. Since an increase in bank credit leads to increased investment and in turn to increased employment levels, changes in bank lending behaviour have a marked impact on the economic development of the country. Banks change their lending decisions in response to changes in the structure of the banking market. One of the issues arising in this context is bank mergers and acquisition (M&As). Since market structures can change as a result of mergers, bank mergers can have a significant impact on changes in bank lending behavior. Bank consolidation in the form of merger become one of the regulations initiated by the Nepal Rastra bank in order to...
...obtain greater market power. Banks merge with other banks that have branch locations in multiple states in order to reach a larger customer base. The anticipated benefits are less competition and increased profits for the resultant bank. The corporate diversification strategy has led to an increase in bank Merger.
The mainly purpose to conduct this study on merger and acquisition of banks and its effect on employee job satisfaction because there has been seen a big change in shape of merger activities after the big financial crises that effects the whole world business strategies in different mode so many employees getting jobless. Every segment of work or business and individuals of the nation is affected by the financial crisis due to the cycle of collecting deposits and lending money chain broken. Peoples do not have the power to save the money in the banks because of less profitability and more expenses that reduced the profitability of the banks too and let them to merge and acquisition themselves with another well-established bank that bear their costs and their existence too. During merger and acquisition activities lots of employees victimize in different terms. They suffer from the stiffed phase of their job. Most of the employee’s job satisfaction level goes ultimate down as they think they will be getting fired or jobless as new management would be come up with new teams of professionals and new procedure of working...
...Proposal for the Acquisition of
Sample Industries, Inc.
Timothy Jones, CEO
ABC Actuarial, Inc.
John Smith, CPA
ACME Valuation Services, LLP
500 North Michigan, Ave.
Chicago, IL 60600
The information contained herein is of a confidential nature and is intended for the
exclusive use of the persons or firm for whom it was prepared. Reproduction,
publication or dissemination of all or portions hereof may not be made without prior
approval from ACME Valuation Services, LLP.
This sample acquisitionproposal was generated using Buy-Out Plan® and the Financial Report Builder™.
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analyze the target company, determine purchase price and terms, and structure a workable financing plan.
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If this were a “live case,” descriptive text would be added about the company, its markets, management and
staffing, capabilities and operations, developing trends, and future...
"Workforce planning is about having the right talent with the right skills, at the right time and cost, to support the organization’s strategy. Workforce planning is a strategic response to changes in workforce demographics, business models and economic conditions – and in today’s environment, it’s more important than ever.” - Watson Wyatt
Telecom’s industry is evolving at breakneck speed and the demands of the customer are forcing organization to make sweeping changes within the industry. The telecommunications industry history has left many companies with rigid and highly complex structures. Human Resource Planning will help to make sure that the organization has employees with the skills and competencies required for the business needs to be competitive. A Human Resource planning works hand in hand with all the business function and with the business plan to determine the skills needed to achieve the business’s goals. It will also help the business to be prepared for staff turnover, recruitment, and strategic hiring.
The telecommunications business is heavily focused on extensive capital investment, in which the company has to invest capital as a key factor for the development and expansion of their network and should have a highly skilled management, competencies and the next generation skills which are the drivers in speeding up the expansion and...
7.2 The Pay Raise
1. To further your understanding of salary administration.
2. To examine the many facets of performance criteria, performance criteria weighting, performance evaluation, and rewards.
1. Complete the Pay Raise Worksheet.
2. In the Forum, discuss your conclusions about who received which raise and your criteria used to award the salary increases.
Pay Raise Worksheet
April Knepper is the new supervisor of an assembly team. It is time for her to make pay raise allocations for her subordinates. She has been budgeted $3,000 to allocate among her seven subordinates as pay raises. There have been some ugly grievances in other work teams over past allocations, so Knepper has been advised to base the allocations on objective criteria that can be quantified, weighted, and computed in numerical terms. After she makes her allocations, Knepper must be prepared to justify her decisions. All of the evaluative criteria available to Knepper are summarized as follows:
Employee Seniority Rating* Rate Skills Initiative Attitude Personal
David Bruce 15 yrs. 0.58 0.5% Good Poor...
Cardio Fitness 1
November 30, 2012
Benefits of Exercise
There are extreme benefits of exercise. Being physically active can help control weight, improve mood, boost energy, promote better sleep, is a easy way to have fun, and is a good way to stay connected with friends or family. Any body can benefit for exercise, even if a person is overweight.
Exercising regularly and eating an appropriate amount of calories will cause a person to maintain a healthy weight. When your heart rate is increased for a prolonged period of time, your body uses more oxygen, which helps your body to burn stored fat. For example, if you didn’t change your diet/or caloric intake and you walked 4 miles a day for four times a week this will burn 1,600 calories. This will result in a half-pound weight loss. If you continued to do this for a year you would lose roughly around 24 pounds (Staff, Mayo Clinic).
The health benefits of exercising regularly are phenomenal. Even if a person is over weight exercising is always beneficial. Exercising helps keep your blood flowing smoothly, which decreases the risk of cardiovascular diseases. When physically active, you are actively boosting high-density lipoprotein or commonly known as “good cholesterol,” and decreases unhealthy triglycerides. It also helps keep your muscles toned and strong. Stronger muscles burn more calories. This means that the more muscle mass a person has,...
1. Synergy Valuation
a. Cost and revenue synergies
Managers of an acquiring company anticipate cost savings pretax of $50 million in the first year of the deal and $100 million the next and that thereafter the savings would grow @ inflation, 2%. Marginal tax rate is 30%. The firm must invest $1 billion to achieve these savings and starting in the third year must spend 5% of the pre-tax savings to sustain the rate of savings. As part of rationalization of operations, some assets will be sold generating a positive cash flow of $20 million net of tax in years 1 and 2 and $10 million in year 3. The analyst judges that these costs savings are rather certain, reflecting a degree of risk consistent with the variability in the firm’s EBIT. Accordingly, the analyst decides to discount the cash flow at the firm’s cost of debt of 6%.
The merger will expand revenues through cross-selling of products, efficient exploitation of brands and geographic and product line extensions. They forecast revenue growth of $100 million in the first year and $200 million in year 2 and thereafter. The COGS underlying these new revenues is 45% of the revenue. This forecast s in constant dollar terms and needs to reflect expected inflation of 2% p.a. To achieve these synergies will require an investment of $400 million initially and 5% of the added revenue each year to fund working capital growth. The target’s cost of equity is 15%
b. Financial Synergies
Managers believe that...
Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices.
(Do not use qualitative characteristics.)
(a) Market value changes are not recognized in the accounting records.
(b) Lower of cost or market is used to value inventories.
(c) Financial information is presented so that investors will not be misled.
(d) Intangible assets are capitalized and amortized over periods benefited.
(e) Repair tools are expensed when purchased.
(f) Agricultural companies use market value for purposes of valuing crops.
(g) Each enterprise is kept as a unit distinct from its owner or owners.
(h) All significant postbalance sheet events are reported.
(i) Revenue is recorded at point of sale.
(j) All important aspects of bond indentures are presented in financial statements.
(k) Rationale for accrual accounting.
(l) The use of consolidated statements is justified.
(m) Reporting must be done at defined time intervals.
(n) An allowance for doubtful accounts is established.
(o) All payments out of petty cash are charged to Miscellaneous Expense. (Do not use conservatism.)
2-2 Presented below are a number of facts related to R. Kelly, Inc. Assume
that no mention of these facts was made in the financial statements and the related notes.
Assume that you are the auditor of R. Kelly, Inc. and that you have been asked to explain the appropriate accounting and related...