MAJOR PROJECT REPORT

ON
RECENT TREND IN MERGER AND ACQUISITION IN
INDIA
A report submitted in partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

(2015-2016)
Submitted by:
Name:-Manpreet singh
Uid.: 132562082

BABA FARID COLLEGE OF MANAGEMENT AND TECHNOLOGY

DEON, BATHINDA

INTRODUCTION TO MERGERS & ACQUISITION

This is an introduction to the subject of mergers, acquisitions, buyouts and divestitures as
covered in my Mergers & Acquisitions course. The purpose is to delineate how and why a
merger decision should be made. The course focuses on mergers and acquisitions in the
context of private as well as publicly traded companies. Acquisitions of private companies
account for the majority of transactions. To properly assess a potential merger we need to
perform fundamental strategic and financial analysis, but remain aware of the idiosyncrasies
that each potential merger contains.
Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance
world. Every day, Wall Street investment bankers arrange M&A transactions, which bring separate
companies together to form larger ones. When they're not creating big companies from smaller ones,
corporate finance deals do the reverse and break up companies through spin-offs, carve-outs or
tracking stocks.

The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate
strategy, corporate finance and management dealing with the buying, selling and combining
of different companies that can aid, finance, or help a growing company in a given industry
grow rapidly without having to create another business entity.
Mergers and acquisitions can result in new organizations whose financial and strategicoptions
are much improved. They are driven by globalization, a long-term market, variousbarriers to
growth, which make M&As a valuable tool by which companies can quickly attemptto
increase revenue.

NEED,SCOPE AND OBJECTIVE OF STUDY

NEED OF THE STUDY

The dominant rationale used to explain M& A activity is that acquiring firms seek improved financial
performance. Whereas our study was based on the effects that mergers and acquisitions have on the
employees, work culture and customers.

Scope of the Study

The scope of our study limited to the area of Bathinda and near by places.

Objective of the Study

To study the present & future merger & acquisitions took place in Indian Economy.
To study the objectives considered by company for the merger and acquisition.
To study the various effects of merger & acquisition on the work culture of the organisation.
To study issues involved in merger and acquisitions.
To study the difficulties faced by employees post mergers and acquisitions.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research.

Marketing

Research is the systematic design, collection, analysis and reporting of data and finding relevant
solution to a specific marketing situation or problem.
an original contribution to the existing stock of knowledge making for its advancement. The purpose
of Research is to discover answers to the Questions through the application of scientific procedures.
Our project has a specified framework for collecting data in an effective manner. Such framework is
called Research Design. The research process followed by us consists of following steps:

Research Design:

Descriptive Research:-A type of conclusive research which has as its major objective the
description of something-usually market characteristics or functions. In other words
descriptive research is a research where in researcher has no control over variable. He just
presents the picture which has already studied.

Conclusion Oriented Research:-Research designed to assist the decision maker in the

situation. In other words it is a research when we give our own views about the research.

Sample Design-Sampling can be defined as the section of some part of an aggregate or totality on the
basis of which judgement or an inference about aggregate or totality is made. The sampling design
helps in decision making in the following areas:

Universe of the study-The universe comprises of two parts as theoretical universe and
accessible universe

Theoretical universe- It includes all the people throughout the universe.

Accessible universe- It includes all the people in India.

Sample frame-Sample frame refers from where the questionnaires are to be filled. Our
sample frame consists of family, friends and classmates.

Sample size- Sample size is the number of elements to be included in a study. Keeping in
mind all the constraints 50 respondents were selected.

Sample unit- Sampling unit is the basic unit containing the elements of the universe to be
sampled. The sampling unit of our study is all age group.

Sampling Techniques- The sampling techniques used are convience technique and simple
random sampling technique.

Methods of Data CollectionResearch work is exploratory in nature. Information has been collected from both Primary and
Secondary data.

Primary sources- Primary data are those, which are collected are fresh and for the first time
and thus happen to be original in character. Primary data has been collected by conducting
surveys through questionnaire, which include both open- ended and close-ended questions
and personal and telephonic interview.

Secondary sources- Secondary data are those which have already been collected by
someone else which already had been passed through the statistical process. Secondary data
has been collected through magazines, websites, newspapers and journals.

BIBLIOGRAPHY

"Mergers and acquisitions explained". http://www.m-and-a-explained.com/.

Retrieved 2009-06-30.

DePamphilis, D. Understanding Mergers, Acquisitions, and Other Corporate

Restructuring Terminology

Mergers

and

Acquisitions

Lead

to

Long-Term

Management

Turmoil

Newswise, Retrieved on July 14, 20014.

Pfizer and Warner-Lambert agree to $90 billion merger creating the world's
fastest-growing major pharmaceutical company

Exxon, Mobil mate for $80B - December 1, 1998 00000

http://www.eia.doe.gov/emeu/finance/fdi/ad2000.html

Online NewsHour: AOL/Time Warner Merger

Scott, Andy (2010). China Briefing: Mergers and Acquisitions i n China (2nd
ed.).

Advantage of a merger. Wikianswer.com. Retrieved from March 31, 2o14.

http://wiki.answers.com/Q/Advantages_of_a_merger

Benefit of mergers. Economichelp.org. Retrieved from March 31, 2011.

http://www.economicshelp.org/microessays/competition/benefits-

mergers.html
Current Trends in Canadian Mergers and Acquisitions.Blake, Cassels &
Graydon LLP. 31 March, 2013

QUESTIONNAIRE

Dear Respondent,
Manpreet Singh, student of MBA of BABA FARID COLLEGE OF
MANAGEMENT AND TECHNOLOGY, conducting a project entitled, RECENT
TREND IN MERGER AND ACQUISITION. We need your co-operation, which
will help us to draw conclusive inferences. So, we request you to spare a few
minutes from your busy schedule and fill this form. We assure you that the
information provided by you will be kept confidential.

1. What was the Objective behind M&A Transaction?

a. Proper utilization of all available resources.
b. To prevent exploitation of unutilized and underutilized assets and
resources.
c. Forming a strong human base.
d. Reducing tax burden.
e. Improving profits.
f. Eliminating or limiting the competition.
g. Achieving savings in monitoring costs.

2. What was the benefit of merger and acquisition?

a. Increased market share
b. Lower cost of operation and/or production
c. higher competitiveness

d. Industry know how and positioning

e. financial leverage
f. improved profitability and EPS

3. What are the negative impacts on employee's behavior by mergers

and acquisitions?
a. counters productive practices
b. absenteeism
c. low morale
d. job dissatisfaction
4. What is the impact of different work culture after merger and
acquisition?
a.

Stress

b.

lack of communication.

c. difficulty in cooperation with management.

d. difficulty in adopting new policies and rules.
e. all above

5. What are the difficulties faced by customers after acquisitions?

a .change in account numbers.
c. conversion of loans.
new staff.

b. increase in branches
d. maintaining relationship with

6. Is it difficult to cooperate with large network of branches and

customers after mergers and acquisition?
a. Yes

b. No

c. Not always

7. What can be the important factors that contribute to the success of

M & A?
a. Timing

b. Intrinsic fit

c. Personnel

d. Advisors on legal, policy and financial strategies

8. What type of programmes needed after acquisitions?

a. technical training
c. orientation programmes

b. explaining new roles

d. post merger team building

9. What was the impact of acquisition on designation and pay package?

a. Loss of identity.

b. change in bonus policy

c. Employers attrition issues

d. different pay packages schemes