Paper Summary:

This research paper investigates the issue of success rates and factors associated with merger and acquisition activities in recent economic and financial history. The paper considers a number of case studies which have been undertaken between 1989 and the present within a diverse range of industries from the IT sector, to that of the financial services sector.
The key focus of the research is to establish to what extent mergers and acquisitions achieve their intended results. Where mergers and acquisitions fail to achieve their intended results, the research paper has attempted to identify the key reasons for such failures. In addition the research paper has also considered the key motivations for engaging in merger and acquisition activity in the first instance.

Outline
1.0 Introduction
1.2 Research aims and objectives
2.0 Methodology
2.1 Research Approach
2.2 Secondary Research
2.3 Qualitative and Quantitative data
2.4 Case studies
2.5 Ethics
3.0 Literature review
3.1 Key Definitions
3.2 Patterns in M&A Activity
3.3 Failure rates
3.4 Reasons for M&A Activity
3.5 Bargain Buying
3.6 Specialist Considerations
3.7 Diversification
3.8 Management hubris
3.9 Expectations
4.0 Findings and analysis
4.1 Case study findings
4.2 Summary analysis
5.0 Conclusions and recommendations
6.0 Reflections
7.0 Recommendations for further research
Bibliography

From the Paper:

"Growth can be achieved by a company in two forms, namely organic growth or external growth in the form of mergers and acquisitions. Organic growth sees a company using its internal resources to expand, this may include investment in additional plants and facilities, the opening of new outlets or simply generating greater efficiencies from existing resources. Whilst organic growth has its advantages, there is the consideration that organic growth can be both a slow process for a business, in addition organic growth policies often lack the headline grabbing attention and excitement of methods associated with external growth.
"On the other hand, a company may also resort to the external environment in order to generate growth potential, and hopefully increases its shareholder wealth. Here the major methods of external growth include engaging in merger and acquisition activity. The advantages of engaging in merger and acquisition activity are that a company can expand at a much more rapid rate, than if organic growth alone was considered. In addition growth through mergers and acquisitions frequently increases the media profile of an organisation, this may have the effect of attracting greater levels of shareholder or potential shareholder interest, at least in the short term."

Sample of Sources Used:

• Aktas, N, Bodt, E, Roll, R. 2006. Hubris, learning and M&A decisions: Empirical evidence. Available online at: http://www.uclouvain.be/cps/ucl/doc/core/documents/debodt.pdf [Accessed on 26/06/10].
• Aldrick, P. 2007. RBS's ABN Amro offer hit by crisis. Available online at: http://www.telegraph.co.uk/finance/markets/2814358/RBSs-ABN-Amro-offer-hit-by-crisis.html [Accsed on 25/09/10]
• Banks, H. 2010. M&A activity rebounds after recession. City AM. Available online at: http://www.cityam.com/news-and-analysis/ma-activity-rebounds-after-recession [Accessed on 26/06/10].
• Barr, N. 2010. Kraft facing backlash over factory close as 400 Cadbury workers lose their jobs. The Daily Express newspaper. Available online at: http://www.express.co.uk/posts/view/157318/Kraft-facing-backlash-over-factory-close-as-400-Cadbury-workers-lose-their-jobsKraft-facing-backlash-over-factory-close-as-400-Cadbury-workers-lose-their-jobs [Accessed on 26/06/10].
• BBC News. 2001. BoS and Halifax agree to merge. Available online at: http://news.bbc.co.uk/1/hi/business/1312047.stm [Accessed on 26/09/10].

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