| dc.description.abstract | Mergers and Acquisitions seem to be a quick fix to business
problems, involving the financial health of the firms. The
problem is that these marriage's don't seem to last long,
they are more polygamous than monogamous, the latter being
the ideal.
This research project addresses the factors considered
important by selected Kenya based firms, from different
sectors, countries of origin as well as local ones, when
they made Mergers and Acquisitions decisions.
These factors were then compared across sectors as well as
by the different modes of origin i.e. local visa vis
foreign.
The study looked at selected firms in seven important
sectors of the Kenyan economy that had merged and acquired
in the last 10 years. The research instrument used to
collect data was a questionnaire with open ended and closed
ended questions. Data was analysed using descriptive
statistics and presented in tables and graphs for
comparisons.
The critical factors considered when firms make merger and
acquisition decisions were found to be the same regardless
of business sector and modes of ownership (local or
foreign). These factors from most important to least
important were: a perfect fit, to improve business growth
and revenues, to consolidate and be more competitive,
globalisation, similarity in cpre competence, political
factors, cost reduction, research and development,
organisational culture and human factors.
Further research can be done to find out why cultural and
human factors are least important in merger and acquisition
decisions and what are the dangers this can cause to the
well being of the new firm. | en |
