Abstract

The main purpose of this research is to investigate the efficiency of merger and acquisition to assess the leadership efficiency and financial achievements in few companies from various sectors in Malaysia in order to ascertain and identify the leadership success in the managerial during the post-merger period.

The research also conducted to measure the impact of merger and acquisition to the financial standings in the post-merger period. This study involves case studies of few domestic and cross-border mergers from various sectors. The synergy benefits are studied in five parameters like revenue, profit before tax, net profit, earnings per share, dividend and net tangible assets assessed through paired sample ‘t’ test to ascertain whether they are improved or declined in the post-merger period.

In case it improves, then the merger is successful or else it will be deemed to be a failure. Pre and post-merger data were retrieved from business websites such as Malaysia stock.biz and Bursa Malaysia Berhad.

The cultural factors of merger and acquisitions have been discovered as one of the key hiccups that can determine the collapse of countless merger and acquisitions. Another key factor that contributes to the failure of this process is lack of leadership skill to tackle the merged company as the size becomes larger in post-merger period.

Some theories pertaining to leadership efficiency in pre and post M&A also discussed in this research.