MERGERS AND ACQUISITIONS: A BUSINESS STRATEGY FOR GROWTH AND CONSOLIDATION: A CASE STUDY OF EMB

Abstract

Since the 2008 global financial crisis, building and construction industries across the globe have struggled to realise any substantial form of recovery with subdued activity forecast by most economists (Lembo, 2013). In this environment, EMB, a predominantly building company is looking towards a merger and acquisition opportunity to realise sustained revenue streams and growth through the acquisition of a construction company predominantly involved in civil engineering disciplines. The objective is to increase their participation in the construction industry, from their current expertise and involvement in large commercial type building, to the inclusion of civil construction works, such as roads and large scale concrete works. The study assessed mergers and acquisitions as an appropriate strategy for growth and consolidation within the South African construction industry and found a particular target company to have the potential to meet all the merger and acquisition requirements pertaining to EMB.