A comparative study of post- acquisition performance of Ecobank and Access Bank Ghana Limited.
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Date
2017-11
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KNUST
Abstract
The global world has become a competitive market. The ultimate aim of most businesses is to grow the business. In such a competitive environment, businesses struggle to keep up with the ever changing trends and as such must adapt a strategic growth tool. Mergers and acquisitions have become one of the most commonly used growth strategies in firms in recent times with mergers and acquisitions. This study assessed the performance of Ecobank and Access Bank after their acquisitions of The Trust Bank and Intercontinental Bank Ghana respectively. A financial analysis of these banks before and after the merger was undertaken. In this study to ascertain whether the merger had affected their performance using some growth indicators in the banking industry such as the return on assets and return on equity as dependent variables, secondary data from published annual reports and PWC Banking Surveys were analysed using Statistical Package for Social Sciences (SPSS) for the data analysis and t-test statistics for testing the hypothesis. At the end of the study, the findings were that the returns on assets and equity were not positively influenced by mergers and acquisitions, and the banks‟ expected outcome of achieving synergy were also not immediately realised with respect to their shares of industry deposits and gross loans. As a recommendation, the researcher suggested that firms should concentrate on reducing their operation costs and focus on increasing their return on sales. Again, banks may have to come up with more innovative products and services, especially towards the niche market, to deviate from the normal services being offered by almost all the banks, and overcome the threat that new market entrants may pose to the existing ones.
Description
A Thesis Submitted In Partial Fulfilment Of The Award Of The Degree Of Master Of Business Administration (Strategic Management And Consulting).