Sample Research Proposal on Do Mergers and Acquitsitions Add Value to Shareholders

BACKGROUND AND CONTEXT When companies are thinking of possible merge and acquisitions, the companies will speak out of the growing value of its respected shareholders for the involved parties and by means of doing it correctly, certain mergers will use to change the companies business competitive background for the engagement in such acquisitions as real mergers can be uncommon but can be occur when certain entity decides the higher stance of shareholder value if the process will combine practically. The research study will focus in examining the shareholder value creation of merger and acquisitions as made and undertaken by UK firms during the 21st century and there has to be empirical examination of certain wealth belongings of the acquiring companies from within the country as the research study will have to observe the outcomes in terms of relatedness as well as cultural distance on the shareholder effects upon merging and acquiring of such valuable assets. There can be implications of research findings to be used by scholastic researchers and it is true that mergers and acquisitions have involved the awareness of scholars in certain business disciplines, particularly in areas of planned organization, global commerce, money matters and manufacturing. However, there confine studies about familial merger, acquisitions (Datta, Narayanan and Pinches 1992) but then, there can be few attention being given to the international acquisitions regardless of major increase in shareholder growth upon the valuing of business transactions.   Research Questions 1. Do merger-acquisitions process intends to measures the performance in line with shareholders value in the market? 2. What is the outcome of merger-acquisitions realities to the shareholders and other key players in the company? How? 3. What is relationship linking to tendency for achieving benefits of merger acquisition in review of shareholder standards and domination? 4. What will happen to the shareholders for targets of merge-acquisitions? Do shareholders and investors understand its presence? 5. What are the disadvantages and advantages of merger-acquisitions to the value of shareholders in companies? 7. What are the consequences of takeovers to other stakeholders in the merged firms?           LITERATURE REVIEW The literature discussions regarding on merger and acquisitions will have to recognize possible shareholder value and benefits in lieu of acquiring companies being associated with formal communication. The merger and acquisition can be possibly motivated by certain intended reflection and probable benefits as there aims to drive several through overseas venture decisions that is incorporated for the accessibility of innovative marketplace as well as the accessibility of inadequate dedicated assets and the opportunities in accomplishing better shareholder construction within efficiency state through the means of dipping opinionated risks due to merging and acquiring regulation involved (Cooke 1988), as the merger as well as acquisitions were being connected upon serving the acquiring UK companies in overcoming conventional business and also certain investment fences (Mergers and Acquisitions, 1990) as there allows the companies to amicably exploit and make use of overseas market chances possibly more quick rather than undeviating venture strategies there may be in merger and acquisitions (Root 1987). There have been probable benefits to acquire companies in global acquisitions as there can twig from the abridged advertising risks due to poor shareholder value.     The global marketplace diversification can have strong effect in terms of alleviating general company income due to shareholder situations in relating to such returns in the market as well as main political atmosphere as there intends to have shareholder correlation of possible useful values that can be diverse of global promotion areas as a result of diversified merger and acquisition (Caves 1982). Thus, it can be in extent as the shareholders and investors can be in right position for the consequence check of such diversification upon their own strength and in some ways shareholder value may not be that meaningful in the actual instance of acquiring company from the other. Furthermore, like in terms of In entrance approach, merger, acquisitions will have some sort of value advantage as the shareholders can view the rate indication of high and low cost terms and conditions upon merging as well as acquiring of such important assets within the company as certain costs of mounting a novel market in overseas country are to be in substantial mode for the shareholders who wish that such acquisitions within established companies can be not as risky as others and the company for the acquisition target will bring good business record for the line up of shareholders value to the company for the ample process of evaluation and assessment of desired approach like in terms of determining the level of shareholder analysis value respectively.   Moreover, international merger and acquisition will intend to provide immediate access to certain novel markets having the established shareholders volume in sales and profits as the work done by Dunning (1988) as well as Krugman (1987) integrates an argumentation that speaks of overseas acquisitions as it can be often chased by the companies that is looking and searching in order to globalize shareholder actions that can be costly for the safe transaction of such valuation through precise promotions mechanism and through parallel points of view as Fatemi and Furtado (1988) have suggested that certain merger acquisition will be able to provide permission to the UK acquiring companies in terms of exploitation of possible value flaws and or inadequacy upon the process in giving out company management in overseas markets due to merger and acquisition. Generally, it can be in reality that the shareholder value are expected to be in high assumption for the process of merger and such related acquisitions due to such familiarity of its instances as the acquiring of company integrates the shareholder value of the acquired company industry and business process and through the giving of value for the shareholder's knowledge of business industry, then, the acquiring company is to be more adept for the integration of possible merged and or acquired firms in contributing to a positive indication of shareholder analysis of its benefits and values.     There has been actual merger as well as acquisition assimilation scheme that was used to discuss the application of the shareholder value approach as the mergers and acquisition have grown greater and is expected to persist powerful pace in the business as such, those mergers and acquisitions are being premised upon the belief that combining of companies will possess a grater shareholder value as compared to some companies against these process. Henceforth, Mirvis and Marks (1992) said that, several business companies that executed better merger and acquisition standards have completed such rationally good quality situation that is in control for the sizing high of shareholder value during a successful takeover as the main concerns can be lawful and financial in the sense of ideals of the value as there adheres the worth of the company as there can be such terms for merger and acquisition as well as how to  structure acquisition process transaction and how to obtain shareholders in getting along with the value base indications as the study analysis can be in concern for valuation of the acquisition deal out as possible.           The objectives of the study First, the study will have to address the issue of shareholder value process in connection to the UK acquiring firms in global merger and acquisitions. The findings are expected to give empirical light on general appropriateness of merger and acquisitions as foreign venture strategy. Second, there has to investigate how relatedness as well as culture distance outcome valuable effects in company merging as well as acquisitions based in the UK. The roles of relatedness found in mergers and acquisitions were emphasized in designed management upon local acquisitions as the study will have to observe as to whether certain relatedness will influence the value of the shareholders in global acquisition processes. The acknowledgement of culture being a determinant of success in merging and acquisition purposes as the empirical examination can be lacking so the research study will have to provide precise sanctions pointing to the empirical evidence having influences as there can be cultural differences on the value of shareholders upon the acquiring of certain UK companies. The study are to be structured with obtainable literature on benefits associated with acquisitions as discussed pertaining to the impact of relatedness and cultural distance on shareholder value. In addition, there describes the use of methods to be adopted such as the sample identification and characteristics as well as variable operation followed by discussion of implications from viewpoint of researchers respectively.   Methodology The sample for this study consisted of mergers and acquisitions and that included in research sample as acquisition will meet certain criteria for determining the value of shareholders also, the study can be limited to those acquisitions upon such announcement concerning acquisition for the UK shareholders of the companies. Thus, sample acquisitions are to be classified in terms of related as well as unrelated mergers and acquisitions basing from shareholders description as investigated as the acquisitions are classified as related if acquiring company is in identical business as of acquired company firm with admiration to acquiring companies. Moreover, the culture fit are to be assessed and measured through the use of variable – the cultural distance and can be computed in way as recommended by Kogut/Singh (1988) and Erramilli (1991) as well as Shane (1992) through the use of merged index supported on difference amid the acquired company realm along Hofstede's cultural dimensions (Hofstede, 1980) such as the power distance and uncertainly avoidance also individuality as well as masculinity and or femininity as there need also for correlation among Hofstede's procedures and indices of some researchers that may indicate such reliability and validity of the study that can go beyond such innovative sample (Kogut and Singh 1988, Shane 1992).   The UK companies can augment their productivity using the executive accounting method of shareholder value analysis (SVA) as the value is obtain by dividing sum value of business by integer of normal shares and useful when covering fiscal implication of possible acquisition activities due to linkage between jeopardy and indecision. The value analysis is one of technique for assessing the shareholder value and draws principles of inexpensive cash flow analysis usually use for purpose of asset appraisal. The study discusses substance in providing information of using SVA in merger and acquisition of several UK companies. The main method will be use in form of questionnaire and follow up of interviews are to be arrange along with respondents from possible of five companies to give shareholder insights and practical approaching. In arriving at average by the success and ort a sense of failure of the shareholder value are to be in comparison as the researchers will identify such drift in company's fairness price and use performance in appropriate process segment and researchers will have to compare definite performance of the company with such average to establish success and or failure in enhancing the value of shareholder due to merger and acquisition.