The effects of mergers and acquisitions on business performance in Nigerian banking industry: an empirical analysis

This paper provides a holistic view of the mergers and acquisitions (M%As) implementation process, by reviewing the hard and soft factors that cause success and failure for M%As implementation, as well as, examine the impact of M%As on perceived business performance measures (PBPM) in Nigerian banking industry. The aim was achieved through an empirical study involving a survey on 19 Nigerian banks involved in mergers and/or acquisitions. Using SEM, multivariate analyses were mathematically represented in a single equation, and findings from this study confirmed that M%As had significant association on PBPM. The equation could be used by banks, and companies alike, to compose strategies to optimise their management of business performance and mergers and/or acquisition programmes. The model was able to provide predictive implications on business performance, given the activities of key factors manifesting successful M%As, hence, these factors could be adopted by companies wishing to undertake M%As programme in Nigeria. Nonetheless, to improve business performance management, companies could control their M%As programme.