Impact of Mergers and Acquisitions on the Performance of Manufacturing Firms in Nigeria

Abstract

This research study examined the impact of mergers and acquisition on the performance of manufacturing firms in Nigeria. A total of thirty-five (35) companies formed the population of this study and questionnaire was used to collect data for this research work. Data generated from the study were analysed descriptively using simple percentages. From the research findings, we formed the opinion that merger and acquisition greatly affect the performance of manufacturing companies in terms of profitability. Also, increase in capital when companies merge together, leads to increase in profit because large capitals increase the business potentials. Skilled manpower leads to increase in dividend per share. Also when companies merged and acquired, they tend to overcome competitors, and this increases sales performance. Based on our findings it was recommended that- there should be adequate supervision of personnel in their various assignments in order to achieve the objectives of the merger and acquisition: and staff should be trained and retrained on regular bases so as to reduce waste and increase productivity.

Key Words: Merger, acquisition, performance, manufacturing firms