ABSTRACT
This research takes a look at the adoption of merger and acquisition as a growth strategy in business organization. There is no gainsaying the fact that many companies have been having financial problems. The reason is not far fetched.This is as a result of mismanagement and economic meltdown. In order to save such unhealthy situation in such companies from going into liquidation, merger and acquisition can be used to revive such companies if properly adopted. Even though merger and acquisition are used interchangeably, they have some differences. A merger occurs when two or more separately existing companies agree to come together to form a new single company. Acquisition or takeover on the other hand is the purchase of controlling power or interest in one company by another company, such that the acquired company becomes a subsidiary or division of the acquirer.
This research work highlighted the benefits involved in the adoption of merger and acquisition as a growth strategy in business organization. The population of the study consists of all the Nigerian companies that have adopted merger and acquisition at one time or the other. Three (3)organizations were selected as sample for the study using convenient and judgmental techniques of sample selection. Data were collected from secondary source and subsequently analyzed using Ratio Analyses. The finding of the study shows that merger and acquisition is an effective and efficient growth strategy in business organization. However, the study concluded that even though merger and acquisitions may not bring about the desired goal and objectives of organizations,its impact is beneficial.
Finally, the study recommends that organizations that are not doing well should adopt mergers and acquisitions as the strategy will help the management to overcome developmental and environmental challenges in business especially in this era of economic crises.
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