Mergers and Acquisitions and their effects on Firms objectives: African
perspective
Abstract
Mergers and acquisitions are widely seen as a long-term strategy for
resolving financial problems in corporations. This research study that
is primarily based on a desk review established that this commercial
enterprise approach has given mixed findings, such as failing to
establish that the stated factors led to the manner of mergers and
acquisitions, nor has it published an increase in profitability of
commercial enterprise financial performance due to mergers and
acquisitions. However, all mergers and acquisitions are no longer
unsuccessful due to some factors like monetary, advertising, and
operational problems. Thus, there are other important factors that
influence mergers and acquisitions, such as value creation, “cultural”
integration, and profitability. According to the study’s findings,
mergers and acquisitions have a positive impact on financial
institutions’ net income in the form of increased wealth, decreased
effective spending, and increased revenue growth.