IMPACT OF MERGER AND ACQUISITION STRATEGIES ON BUSINESS GROWTH IN QATAR AND GLOBAL MARKETS

Abstract

Increased globalization and competition in various industries has led to the rise of mergers and acquisitions for companies seeking competitive edge. The objective of this study is to investigate the impact of mergers and acquisitions (M&A) on business growth in Qatar and global markets. The study adopted a quantitative research design approach to understand the post-M&A performance dynamics, examining key variables such as revenue growth and return on investment (ROI). The survey also explores other factors influenced by M&A, like market share, profitability, liquidity, and leverage. The study's population encompassed four Qatar-based companies and three global companies involved in M&A transactions since 2009. The study used secondary data from financial reports as well the regulatory authorities' annual reports of the merged companies before and after merging with competitors. Descriptive statistics compared pre- and post-merger values, offering insights into changes in business performance and operations. Correlation analysis assessed associations between variables before and after mergers, while regression analysis explored their relationship with business growth. Findings indicate M&A boost revenue growth in Qatar-based firms, even though exceptions exist among international corporations. Qatar firms showed no significant ROI improvement post-merger, unlike Verizon Inc. Market share increased for all the companies post-merger, indicating enhanced market dominance. Likewise, profitability ratios decreased for most companies except Verizon Inc. Liquidity ratios also decreased post-merger, except for AT&T Inc., while leverage varied. Correlation analysis revealed positive relationships between market share and growth pre- and post-merger, with ROI showing a weaker premerger negative correlation, shifting to a weaker positive correlation post-merger. Pre-merger regression had limited explanatory power (19.1% variance), contrasting with post-merger (86.3%). None of the variables were statistically significant pre-merger, but post-merger, ROI and leverage showed positive but insignificant relationships with business growth. The findings highlight M&A's varied impact on business growth, emphasizing the importance of integration management and strategic planning for maximizing benefits and driving sustainable growth in Qatar and global markets.