Assets Valuation, Mergers and Acquisitions of Business Organisations in Nigeria

Abstract

Although merger and acquisition is very crucial to the growth of organizations, to assess the potential profit and benefits of mergers and acquisitions, company valuation is required. Nevertheless it seems that wrong valuation choices has affected the decisions of many organization as regarding which company to merge with or which one to acquire and this has also affected many business organization. Studies have had inconclusive findings thereby creating a gap which needs to be filled. Hence, this study examined the effect of assets valuation on mergers, and acquisition of selected money deposit banks in Nigeria. This study quantitatively examined how assets valuation affects merger and acquisition of selected money deposit banks in Nigeria. The study employed survey research design. A stratified selection strategy was used to choose a representative sample from the research population. Data were analysed using descriptive and inferential statistics. The study findings shows that Assets valuation has a positive significant effect on mergers, and acquisition of selected money deposit banks in Nigeria (Adj R2 = .279, f = 127.375, p<0.05). The result of hypothesis concluded that assets valuation had a significant effect on merger and acqusition of selected money deposit banks in Nigeria in Nigeria. Based on the findings, the study recommend that adequate valuation of assets be examined or carried before acquiring a bank. Also investors should only invest or merge with banks whose assets have appreciable outlook so as to remain profitable at a long run. Keyword: Assets, Acquisitions, Stakeholders, Mergers, Valuation