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Pages:
13 pages/≈3575 words
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13 Sources
Level:
APA
Subject:
Business & Marketing
Type:
Research Proposal
Language:
English (U.S.)
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Topic:

Merger and Acquisition Research Proposal (Research Proposal Sample)

Instructions:

a research proposal on the mergers and acquisitions practices within bussiness context

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Content:


Merger and Acquisition Research Proposal
Student’s Name:
Instructor’s Name:
Date:
Research Proposal
Introduction
Mergers and acquisition have been instrumental in promoting the capacity of diverse companies to compete effectively and enhance the customers’ value due to the energy acquired form the process. Equally, mergers and acquisition have been connected with the economic growth of different destination due to the flow of new knowledge and financial cash flow from the acquiring company’s country. However, some mergers and acquisition have been successful while others have failed terribly. The failure of a given merger and acquisition has significant detrimental effect to the shareholders due to the loss of the wealth they had invested. Equally, the failure has an adverse effect on the local economy due to the wastage of the resources and a negative image as a good investment decision for foreign investors. In contrast, success of a merger and acquisition is crucial in promoting the wealth of the investors and economic growth of the given country.
Consequently, it has attracted an interest to the researcher on the issue of mergers and acquisition to determine critical factors that influence the success of the decision. The determination of the factors should consider in undertaking a given merger and acquisition will be great significance to the shareholders and the local economy. Thus, the researcher is interested in the subject matter to enhance future personal career in management to manage mergers and acquisition decisions effectively and successfully. Similarly, promoting the current financial theories focusing on mergers and acquisition decisions is another critical interest that has motivated the decision to undertake the research. An improvement on the current mergers and acquisition management theories will help to save future undertakings, which is vital in promoting the welfare of the investors and the global economy. Consequently, the two reasons have motivated the need to undertake a research on merger and acquisition targeting two companies namely, Medtronic (Covidien) and Diligents in the last five years amounting to fifteen acquisitions.
Problem Statement
The problem statement behind the research study under the consideration is to fill the gap not reflected by the various concepts on the managerial skills required to effectively manage a merger and acquisition decision. The various concepts have extensively focused on the financial factors that should inform if the merger and acquisition under the consideration should be considered for implementation. Indeed, majority of the merger and acquisition decisions that have been undertaken in the past have been considered after passing the financial test informed by the financial analysis factors. However, the world has experienced famously published undertakings within or after some years.
Consequently, the research study will expand further beyond the financial factors recommended in considering if a given merger and acquisition will succeed by focusing on managerial skills that have stood the test of time. The determination on the managerial skills that have proved successful in assessing possible mergers and acquisitions to consider will help in identifying critical managers to involve in the process in the future. Equally, the recognition that managerial skills beyond the financial factors analysis are crucial in merger and acquisition decisions has an opportunity of opening doors to professionals without financial background in the management of the undertaking but have the required manpower to move the investment successful.
This opportunity is crucial in ensuring companies considering a merger and acquisition exercise recruit effective leadership in the undertaking evaluation and transition. The statement problem identified also is essential in promoting the concepts of merger and acquisition to the real world of business since it will help in appreciating the role played by professionals without financial, accounting or economy in managing the undertaking effectively. The appreciation of outsiders under the current concept of merger and acquisition, which highly focus on financial analysis, will promote the leadership diversity in the undertaking. Leadership diversity is crucial in attracting diverse wealth of knowledge on how to do business successfully, which is crucial in maximizing the wealth of shareholders and the economy. Consequently, the research study should be considered due to the instrumental role it will play in enhancing the possibility of the future mergers and acquisition to succeed and introduce new dimensions to add in theory of merger and acquisition.
Purpose Statement
The purpose of the study under the consideration is to add knowledge in the field of the mergers and acquisitions. The findings of the study on the managerial skills that have proved critical in the success of the past acquisitions from the two companies selected will be critical in informing the future leaders on the human resource to acquire in their undertakings. The past failures that have been experienced in the merger and acquisition decisions will highly be avoided with inclusion of essential players in the decision-making process.
Equally, the purpose of the study is to enhance the themes taught to future students anticipating to become merger and acquisition consultants on the dimensions to reflect in making their recommendation to the management of the companies considering to merge or acquire. The students will be better equipped by understanding on the necessary team to gather in undertaking diverse merger and acquisition consultancy tasks based on their unique characteristics. Thus, the research study will be crucial in enhancing the skills of the future merger and acquisition management teams.
Furthermore, the purpose of the study is to inform the prospective publicly listed companies considering acquiring other small companies or competitors on the essential factors they should consider beyond the financial analysis. The failure of the past mergers and acquisition despite deep financial analysis to approve their feasibility could have been contributed to other factors the assessors failed to appreciate in their recommendation for the undertaking to be approved. Accordingly, the deep reflection on the performance of the fifteen acquisition undertakings the Medtronic (Covidien) and Diligents in the last five years will help in unearthing essential qualitative factors future decisions should consider in ensuring the investments are strongly viable. The realization of this essential empirical evidence will be vital in preventing the shareholders from losing their wealth from expensive acquisitions in the future.
Moreover, the study will offer a significant purpose of enabling the regulators in the future to advance the criteria of approving a merger and acquisition initiative proposed by a given publicly listed company. Regulators, such as U.S Securities and Exchange Commission (SEC), have an obligation to protect shareholders and prospective investors from major undertaking by publicly listed companies, which have the potential of exposing them to major financial losses in the future. Accordingly, the findings of the study on the critical factors that can contribute to the failure of merger and acquisition undertakings will enable the regulators to establish other red flags to employ in assessing the risk exposure to the shareholders if the investment is approved. Consequently, the study will serve major purposes if it is approved for execution.
Literature Review
Multiple empirical studies have been undertaken in the past to focus on elements that should motivate a company to undertake a merger and acquisition decision. Even though much of the literature has covered on the financial factors that are considered in approving the feasibility of a given merger and acquisition decision, various non-financial factors have been identified essential in making the decision. Maran and Parker (2019) in their study discovered that non-financial factors have also played a significant role merger and acquisition decisions in the past. The two researchers investigated the factors, which motivated the Fiat Company’s acquisition decision of the Ferrari in 1969. Accordingly, the authors analyzed the board meeting minutes, media coverage and financial annual reports leading to the acquisition decision. The findings of the study indicate the acquisition decision was motivated by the brand reputation, professional expertise of acquired firm, family control, and accounting and financial factors CITATION Mar19 \l 1033 (Maran & Parker, 2019). Moreover, the research study discovered the accounting and financial motivations had marginal importance in the final decision arrived CITATION Mar19 \l 1033 (Maran & Parker, 2019). The findings of the study by Maran and Parker (2019), demonstrate that non-financial factors have the potential of playing a significant role in influencing a merger and acquisition decision over the financial motivations.
Gavin (2019) in article published in Harvard Business School Portal evaluated the non-financial risk factors that have been critical in determining the success of the mergers and acquisitions over the years. Gavin (2019) identified various factors that have affected the success of the mergers and acquisition undertaking before and during execution period. The various factors identified by the author are due diligence, overpayment, miscalculated synergies, and integration issue CITATION Gav19 \l 1033 (Gavin, 2019). The diverse factors considered by the author demonstra...

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