DISSERTATION REPORT ON A STUDY ON PERFORMANCE AND EFFICIENCY OF MERGER AND ACQUISITION IN RETAIL SECTOR By Reema Jain A0101911257 MBA

General Class of 2013 Under the Supervision of Prof. Bhavna Ranjan In Partial Fulfillment of Requirements for the degree of Master of Business Administration-General At AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
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DECLARATION

Title of Project Report: Study on performance and efficiency of merger and acquisition in Retail sector. I declare (a) That the work presented for assessment in this Dissertation Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged

(b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Date :

Reema Jain A0101911257 MBA Class of 2013

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CERTIFICATE

I, Prof. Bhavna Ranjan hereby certify that Reema Jain student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed the Project Report on : Study on performance and efficiency of merger and acquisition in Retail sector, under my guidance.

Prof. Bhavna Ranjan Department of Finance

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ACKNOWLEDGEMENT

There is always a sense of gratitude which one expresses to others for the help or needy service they render during all phases of life. I would like to express my gratitude towards all those who have been helpful to me in taking this mighty task of this project to a successful end.

I consider it a pleasant duty to express my heartfelt appreciation, gratitude and indebtedness to my faculty guide Prof. Bhavna Ranjan , Deptt. of finance, Amity Business School for keen interest, invaluable pain taking and excellent guidance, patience, endurance, encouragement and thoughtful advice throughout the project work duration.

I express my sincere thanks to my family, friends and person who helped directly or indirectly with his or her labour and advice for the successful completion of the dissertation report.

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ABSTRACT

Mergers and acquisitions are the one of the quickest and fastest ways of turning a small company into a large enterprise. They are taken as a resolution to various situations. This topic was chosen because of the growing effect the activity of mergers and acquisitions of various sectors taking retail sector as an example. Due to the increased competition and globalization companies get involved into mergers and acquisition. The aim of this dissertation is to provide both an academic and methodical view on the financial and operational aspects of mergers and acquisitions and its impact on the industry by assessing the pre and post merger performance of a specific company. The dissertation specifically studies the hypothetical situation of merger of companies namely Walmart with Dollar general, in the retail sector. This research investigates the reasons involved in entering into mergers and acquisitions and whether the performance of the acquiring firm increases post its acquisition and the impact it has on the wealth of shareholders. The findings present that both the target company and the acquiring company had a healthy financial performance before and after the merger. The analysis involves future prediction of financial performance of both the companies by using discounted cash flow approach, then comparing its performance with its peers in the same industry by using relative valuation approach and finally calculating the synergy effects of the likely merger.