Advanced Business Economics 4ECQ650

... Advanced Business Economics 4ECQ650 Semester 2, 2005-2006 Coursework: Question 1, Mergers and Acquisitions Word Count (excluding titles & appendices): 2481words Name: Josephine Tang Student No: 03071847 Tutor: Nic Zafiris Date: 5th April 2006 TABLE OF CONTENTS Section Page 1.0 Possible reasons to justify or explain a merger or acquisition 3-4 2.0 Likely motivations underlying the merger between Halifax & Bank of Scotland 5 2.1 Performance analysis before and after merger 6-9 2.2 Influential factors that were influential to the success of the merger 10-11 Appendices A Halifax - Profit & Loss Account 2000 12 B Halifax - Balance Sheet 2000 13 C Bank of Scotland - Profit & Loss Account 2000 14 D Bank of Scotland - Balance Sheet 2000 15 E HBOS - Profit & Loss Account 2002 16 F HBOS - Balance Sheet 2002 17 Bibliography 18 1.0 Possible reasons to justify or explain a merger or acquisition It is often suggested that profit-maximising firms are motivated to grow in size; this can be done either through internal growth or through a merger/acquisition. Mergers permit a quick and more certain expansion. However, sometimes a firm is reluctant to lose its independence and is

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