The Role of Mergers and Acquisitions in American Business Wealth

This study focuses on the General, Selling, and Administrative Expense Ratio (GSDER). Figure 1 shows a significant drop in the General, Selling, and Administration Expense Ratio (GSDER) following the merger. Weston (1989) argues that a decrease in GSDER after a merger indicates that the firm has begun to realize operational and strategic synergies. The post-acquisition era saw a fall in all liquidity ratios, supporting the conclusions of Lewellen (1971). Due to reduced liquidity, the new firm may face cash flow issues and struggle to satisfy present obligations, thereby jeopardizing operations and existence.Financial leverage is calculated using two ratios: Long Term Liabilities to Total Assets and Debt Equity Ratio (DER). Due to inconsistent reporting of long-term obligations in pre- and post-merger balance sheets, the study solely uses the DER to quantify financial leverage. Financial leverage decreased dramatically in the first year following the merger.

The Debt Equity ratio decreased from in the first year of the merger and gradually

Increased after that. Overall, the DE ratio decreased from an average of 56 in the pre-merger period to an average of 2.41 after the merger. This may indicate that the merger was financed by debt. Growth is evaluated by increases in turnover and assets. The combination led to higher growth rates in assets and turnover. This suggests that the merger boosted the value of assets. The first year of the merger saw a huge boost in asset growth to around 206%, up from 39% in 2005. However, asset growth decreased to 20% in the second year after the merger. This could be due to the acquisition of several assets in the first year of the merger and their subsequent disposal in the second year. Similarly, turnover increased dramatically in the first year following the merger. The merger may have resulted in monopolistic or superior market power. Earnings per share (EPS) and dividend per share (DPS) are two metrics used to assess investment returns. Following the merger, these two metrics of investment returns showed an upward trend. This study analyzes how mergers and acquisitions (M&A) affect company financial performance, specifically for Total Petroleum Ghana Limited. The study examines the impact of Total Ghana Limited's acquisition of Mobil Oil Limited on its financial performance. Performance measures are based on annual final accounts data from 2000 to 2012, covering six years before and six years after the acquisition. The pre-acquisition period is from 2000 to 2005, while the post-acquisition period is from 2007 to 2012. The analysis did not include the year of the merger, 2006, due to variations in accounting methods that may have biased the results.

The study examines performance indicators such as growth rates

Change in turnover and asset value) and profitability ratios (Gross Operating Margin). NetBusiness is one of the oldest professions that humanity has, as timeMergers and acquisitions are a common practice among firms worldwide to gain a competitive advantage, boost profitability, and achieve economies of scale. Mergers can occur horizontally, vertically, or as conglomerates. Large corporations often expand by acquiring smaller or struggling companies, which can be either hostile or gentle. Corporations are reorganizing through mergers, acquisitions, consolidations, and divestitures to capitalize on external opportunities. From 1895 to 1905, the ten-year period known as the "Great Merger Movement" marked the acceptance of commercial mergers among American corporations. Mergers and acquisitions have gained popularity in the US and globally during the past two decades. The late 1990s saw a surge in mergers and acquisitions in the US due to strong stock market conditions.Mergers and acquisitions can involve millions or billions of dollars and impact all stakeholders involved, including employees, top management, suppliers, and shareholders. Stakeholders are immediately influenced by a company's board's mergers and acquisition decisions.Businesses can benefit from acquisitions by diversifying, expanding operations, increasing market share, and acquiring specific expertise from other companies. For example, HP's recent $2.35 billion acquisition of 3par, a leader in enterprise storage products, gives HP an advantage in the market. HP acquired a company. As technology advanced, the world became smaller and distances became shorter, ushering in the era of globalization.

Globalization necessitates a worldwide view for businesses operating

Across countries and continents, rather than limiting them to certain areas or territory. To get a competitive advantage, forward-thinking corporate leaders often expanded geographically. Some companies achieved success through mergers and acquisitions, which can provide a stable business. Mergers and acquisitions are not always successful and might backfire. Over the past decade, emerging countries' economies have outperformed those of industrialized countries due to lower production costs, prompting them to acquire enterprises from the latter. Indian and Chinese businessmen are more aggressive than others in this regard. Financial metrics include Operating Margin, Returns on Assets, and Returns on Earnings, as well as expenses (General, Selling & Administration Expense Ratio), liquidity (Current, Quick, and Acid Test Ratio), financial leverage (Debt Equity Ratio), earnings per share, and dividend per share.The merger resulted in a drop in all profitability ratios except the Gross Operating Margin. Expense ratios fell in the post-merger period. After the merger, all liquidity ratios showed a small fall. The study indicated that financial leverage decreased following the merger.The analysis found that the average rate of turnover and asset growth rose after the merger compared to before. This indicates that the merger had a beneficial impact on growth. Earnings per share and dividend per share showed an upward trend after the merger. This suggests that the merger benefited shareholders by increasing their share earnings.