Adoption of Mergers and Acquisitions as a Strategic Approach by Cfc Stanbic Holdings in Kenya

Abstract

The objective of this study was to establish the factors influencing the performance of mergers and acquisitions of international companies in Kenya in the case of CFC Stanbic Holdings limited. The specific objectives of this study were; to determine the extent to which CFC Stanbic Holdings Ltd has adopted mergers and acquisitions as a strategic approach and to determine the factors that have influenced the adoption of such a strategic approach. The study was a case study since the unit of analysis was one organization. The population from which the primary data was collected was the top managers and functional heads. The primary data was collected using an interview guide. The data obtained from the interview guide was analyzed using content analysis. This study concludes that top management commitment and support is key towards the performance of mergers and acquisitions like CFC Stanbic holdings as the results explained. The results depict a conclusion that it’s the duty of the top management to motivate employees with the necessary level of commitment, engagement, confidence and comfort to work through difficult transitions and that the top managers inspire a sense of purpose. The study concludes that CFC Stanbic holdings has adopted various communication channels which ranged from email, meetings, notice board, internal memos, phone calls, communication, text messages, letters, reports and submission of proposals. The study concludes that the various aspects of financial management in the CFC Stanbic merger are but not limited to the allocation of assets and liabilities over time under conditions of certainty and uncertainty, identifying sources of funds for the organization, ensuring there is adequate returns to shareholders, meeting regulation requirements, ensuring safety on investment and planning sound capital structure for the organization (merger). This study concludes that the employees in the organization have embraced culture to a great extent. The study concludes that the culture at CFC Stanbic Holdings had a deep impact on the performance of employees. The study concludes that there are various risks that influence the performance and the growth of CFC Stanbic holdings. It was due to good culture management that unity was created, openness was achieved and that opportunities were created as employees interact altogether at CFC Stanbic Holdings. The study recommends the adoption of a transformational type of leadership for it is the most effective in cases where two or more organizations merge to achieve a goal. There is need for the managers in the organization to ensure that the communication systems were monitored, right information reach the right people hence avoiding creating confusion and conflict. This study recommends that the management adopt even more new financial management aspects and processes that are key in promoting the growth and performance of CFC Stanbic holdings. The sole role of the management is to ensure that there is a harmonized culture.