Antoine Talal Chamoun
Published: 2007
Total Pages: 136
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Merging activity is wide spreading these days effected by the term "Bigger is be tter" as this would lead to increasing revenues, reinforcement of investors' tru st, and to decreasing the costs due to the economies of scale. Companies resort to mergers and acquisitions when they find it beneficial for them to work togeth er instead of waging a commercial war upon each other. Banking sector has been a ffected by this wave where we find that during the last decade a huge number of banks merged together. On the economical side, mergers and acquisitions are set to be a strategic maneuver of external growth of the companies involved. But it is interesting to distinguish between both terms. However, is merging the right decision for all banks? Will it always lead to profit? Is it the only resort? Th e answers of these question accompanied by others are found in this paper. The r eader will find that merging must not only be driven by the desire to increase p rofits but must be done on a feasibility study that takes into consideration the geographic factor, the widening of the customer base, the fact of eliminating c ompetition, growth and its results, avoid a takeover target, and to improve sale s stability. Also, not all mergers lead to increase the companies/banks profit, for this a deep and keen study must be done. Moreover, there are different resor ts and solutions for a company other than merging. This paper is a study for the Lebanese banking sector, and a case study for Audi-Saradar merge. For this afte r introducing the topic in chapter one, chapter two will define the terms mergin g and acquisition, state the difference between the two, kinds, reasons and resu lts. It will also state the other resorts of a company. Chapter three will study the history of merging and acquisition by studying the five waves, then taking two international case studies for merging in baking sector, Turkish and Greek c ase, and looking at the European choices and lessons in general. Chapter four wi ll be the study of the Lebanese market, where one will be able to have a general look at some of the Lebanese bank before studying Audi Bank under the microscop e. Last but not least, chapter five will rap up the paper.