Corporate Strategy Analysis in Increasing the Value of the Firm through Mergers and Acquisitions in the Banking Sector (Case Study on the BCA Group)

Abstract

This study aims to determine the company's strategy based on after experiencing corporate mergers and acquisitions, considering the value of the firm and the company's financial ratios in the financial industry sector (a case study on the BCA Group). Quantitative research is carried out by analyzing Financial Statements one year before and one year after the merger and acquisition corporate action is carried out which has been audited from 2018 to 2020. Qualitative research is carried out by conducting interviews with Bank BCA Senior Employees (20 years experience at BCA) and employees of the BCA Syariah business unit. Technical analysis of quantitative data using SPSS software, technical analysis of qualitative data is carried out using the Strength-Weakness-Opportunity-Threat (SWOT) matrix. The results showed that the value of the firm experienced the highest value when the merger and acquisition corporate action was carried out in that year. Quantitative analysis of financial ratios before and after the corporate action was carried out did not show significant results. The corporate strategy recommendation based on a comprehensive analysis of the company's current conditions and conditions is to determine the strategy aggressively, this is due to internal strength factors and existing opportunities that are expected to be maximized by the company. This strategy is intended to support an aggressive growth policy, this may be done because the company has opportunities and strengths so that it can take advantage of existing opportunities.