[Impact of Economic Crisis on Mergers & Acquisition Mergers]

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

Global foreign direct investment (FDI) stocks, which stood at UK £ 14 bn. in 1970, have more than 140 times to nearly £ 2000 bn. by 2007. Also important is the fact that most of the rise in global FDI was due to Mergers & Acquisition (M & A s) of existing organizations, as opposed to creating an entirely new entity (i.e., investments, "Greenfield"). According to the United Nations Conference on Trade and Development (UNCTAD), global international mergers and mergers in 2006 worth about £ 880 bn., reached its peak in 2000 of almost £ 1.2 trillion. For comparison, it was a small amount of pre-1980 dealings and a relatively modest £ 150 bn. in M & A suggestions in the early 1990's. We should also note the developing importance of Asian under-developed states in this international M & A s, as sources of funding, as well as areas of investment. These international mergers and streams have deepened the economic integration of under-developed states into the global economy. This paper examines whether firms involved in M & A work experience abnormal returns around M & A announcement periods, and tests if abnormal returns on stocks of these firms will be affected by the types of procurement, payment methods or types of target firms, using data from six Asian key markets. It was proved there is a notable negative mean residual target firms around the M & An announcement period. This means that the market reaction of firms' targeted acquisitions in is negative.Secondary data was used to answer all the existing research questions. As far as primary data is concerned, used the questionnaire method was used. The surveys provided were also of secondary data



Table of Contents

RECOGNITIONII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the research1

Problem Statement4

Rationale4

Aims and Objectives5

Significance5

Research Question5

Theoretical Frame work6

Limitation of the Study7

Assumptions7

Ethical Concern7

CHAPTER 2: LITERATURE REVIEW9

Merger and Acquisitions9

Mergers:9

Acquisition10

Comparing the M&A's Activity during Different Economic Turmoil:11

Mergers during Crisis :11

The Problems Faced by M&A during the Economic Crisis 12

CHAPTER 3: METHODOLOGY25

Research Design25

Literature Search25

CHAPTER 4: DISCUSSION26

How Economic Crisis Has Changed the M&A Mergers26

To recognize the exact causes forced to slowdown M & As in view of economic crisis .27

Strategies available to safeguard M & As activity in future economic turmoil27

Potential M&A Risks and Challenge28

Due Diligence for the success of the transaction29

The growth of M & As in the times of economic crisis 33

CHAPTER 5: CONCLUSION37

Implications for the economic sector39

REFERENCES41

APPENDICES49

CHAPTER 1: INTRODUCTION

Background of the research

Mergers and acquisitions (M & A) undertaking has expanded considerably worldwide over the past two decades, the number ...