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Growth through mergers and acquisitions : case study analysis of two Thai companies | |
Author | Nyo Nyo Aung Kyaw |
Call Number | AIT RSPR no. SM-96-34 |
Subject(s) | Consolidation and merger of corporations--Thailand |
Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
Publisher | Asian Institute of Technology |
Abstract | Mergers and Acquisitions activities have been said to become more and more popular in Thailand as the companies want to become competitive. "The bigger, the better" goes with M&A activities. M&As role in accelerating the growth of companies includes, most importantly, the achievement of synergy, operating economy, skills and know-how transfer, and the business network thereby market expansion and exploitation. Management at the stage of post-merger integration is a critical element in successful operation of the companies after merger. Countries in both developed and developing regions are placing more importance on role ofM&As in the growth of companies and thereby to the economic development of the country. This research study covers widely tthe development of M&As in developed and developing countries especially in Asia and in particular in Thailand of which , studies are made through the questionnaire survey and two case studies to understand more of M&A practices in Thailand. The main purpose of the first case study was to analyse the performance of companies before and after merger through looking at the expectations of investors in the stock market, i.e., variations in stock prices of the company as the company is listed in the Stock Exchange of Thailand. The second case study explored the performance of target company before and after merger, compared pre and post-merger performance and analysed how the management has been applying different tactics to gradually turning around the problem target company. The intention of the survey was to understand more the general practices of M&A activities in Thailand; how the companies are motivated, what kind of benefit they achieve through mergers and lastly their recommendations on the policies of securities acquisitions in Thailand. The important lesson learnt from this study was that some companies and the M&A related advisors do not thoroughly consider or/and understand the rules and policies set by SEC and SET. So, there is long and difficult process, for example, due diligence process. Therefore, it is difficult to have a successful deal and thereby deterring the development of M&As in Thailand. It is recommended that M&A deals in Thailand be handled by the experienced financial institutions and advisors who understand rules thoroughly. In addition, SEC and SET procedures are recommended to simplify as much as possible to facilitate more development of M&A in the future. |
Year | 1996 |
Type | Research Study Project Report (RSPR) |
School | School of Management (SOM) |
Department | Other Field of Studies (No Department) |
Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
Chairperson(s) | Pandey, Indra M. |
Examination Committee(s) | Gupta, Jyoti P. ;Do, Ba Khang |
Scholarship Donor(s) | Asian Institute of Technology Partial Scholarship |
Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1996 |