Abstract:
Acquisitions remain the main strategic tool for
corporation growth in world as compared to Pakistan; in
last 5 years there can be found more than 250
Acquisitions as compared to merely few M&A 15 years back
although their unique strength to create shareholder
wealth remains questionable.
The purpose of the research is investigate if Pre and
Post Acquisitions practices and the linkages with other
departments (Marketing and human resource) for short run
and long run changes. The research will explore a
merging tread in Pakistan weather the acquisition of
local companies by bigger firm gains more profit or else
the local companies that are acquired by foreign and
international companies generate more income.
The research will also look into stability of the
investment for shareholder perspective in terms of
earnings per share, price to earnings and also the
growth in market share after M&A.
The group 1includes Lucky cement by acquiring ICI, GSK
Pakistan, Orix Bank and orix investments , Khushali Bank
acquired by UBL comparing it with the group 2 which are
them self local companies listed in KSE by are acquired
by Non listed or foreign listed companies.
For instance Telenor acquisition of Tameer Bank, tamer
bank its self is KSE listed by is acquired by foreign
listed company of Europe expanding its operations in
Pakistan. Others in this group contain U-Bank acquired
Rozgar microfinance bank, Metlife Global Acquisition of
American life Insurance and Pakistan International
Container Terminal acquired by a International Container
Terminal Services, Inc. (ICTSI).
The purpose of this research is try to find difference
when a local firm acquires a smaller company versus a
foreign or non listed company acquires a local smaller
company to expand their production, profit or markets
share.
The key performance indicators like age of company,
local popularity, and nature of business / industry will
also be disuses and their impact on performance.
