Mergers and Acquisitions

UNIVERSITY OF NAIROBI
SCHOOL OF BUSINESS
MASTERS OF BUSINESS ADMINISTRATION
COURSE: FINANCIAL SEMINAR
COURSE CODE: DFI 605
SEMESTER: JANUARY-APRIL 2012
CLASS PRESENTATION: GROUP NINE PRESENTATION
TOPIC: MERGERS AND ACQUISITIONS, MODERN THEORY OF CORPORATE CONTROL
COURSE INSTRUCTOR: MIRIE MWANGI
GROUP MEMBERS: STUDENT | REGISTRATION NUMBER | BANCY WANGUI | D61/60453/2011 | ISAAC NYAMORA | D61/66960/2011 | JACQUELYNE M. ODERO | D61/62818/2010 | JOSEPHINE M. ODERA | D61/63410/2010 | MATTHEWS WAUYE | D61/63904/2010 | SAMUEL GATHUA | D61/64121/2011 | TIM SILOMA | D61/60464/2011 |

ABSTRACT
In today’s globalised economy, mergers and acquisitions (M&A) are being increasingly used the world over, for improving competitiveness of companies through gaining greater market share, broadening the portfolio to reduce business risk, for entering new markets and geographies, and capitalizing on economies of scale. This document is structured in three parts. The introductory section provides an overview of the definition of mergers and acquisition, motives and the types of mergers and acquisitions.
Part one of the document provides the historical evolution of the mergers and acquisition activity in the United States, explaining the environment in which they took place. I then explain the theoretical motivations for mergers and acquisitions, focusing in rational and irrational behaviors. Part two discusses the various empirical studies undertaken in the field. Finally, a discussion of unresolved issues around the topic.

ABBREVIATIONS

ANOVA Analysis of Variance
KPMG Kenya Peat Marwick Group
M & A s Mergers and acquisitions

TABLE OF CONTENT

ABSTRACT 1 ABBREVIATIONS 2 CHAPTER ONE 5 1.0 INTRODUCTION 5 1.1 Definition of Mergers and Acquisitions 6 1.2 Motives for Mergers and Acquisition 7 1.2.1 Synergy 8 1.2.2 Accelerated

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