THE RELEVANCE OF RECAPITALISATION AS A MEANS OF STRENGTHENING THE CAPITAL BASE OF A LIMITED LIABILITY COMPANY Case Study of First Bank Plc

TABLE OF CONTENTS

Declaration.. iii

Certification.. iv

Dedication.. v

Acknowledgementvi

Table of Contents. vii

Abstractix

CHAPTER ONE.. 1

1.0 Introduction.. 1

1.1 Background of the Study. 2

1.2 Statement of the Problem.. 4

1.3 Objective of the Study. 4

1.4 Significance of the Study. 5

1.5 Scope of the Study. 5

1.6 Limitation of the Study. 6

1.7 Plan of the Study. 7

CHAPTER TWO.. 9

2.0 Literature Review.. 9

2.1 Basis of Recapitalisation.. 9

2.2 Economics of Recapitalisation.. 11

2.3 Paradox of Recapitalisation.. 12

2.4 Major Option of Recapitalisation.. 12

2.5 The Nigerian Capital Market13

2.6 Merger and Acquisition.. 16

2.7 Types of Merger18

2.8 Reasons for Merger19

2.9 Benefactors of Merger and Acquisition.. 20

2.10 Merger and Acquisition Process. 21

2.12 Financial Techniques in Merger and Acquisition.. 26

2.13 Major Reasons for Success. 28

2.14 Legal Issues in Merger and Acquisition.. 29

CHAPTER THREE.. 31

3.0 Research Methodology. 31

3.1 Area of Study. 31

3.2 Variables of the Study. 32

3.3 Study Instruments. 32

3.4 Sampling Techniques. 33

3.5 Sample Size. 33

3.6 Technique of the Analysis. 34

CHAPTER FOUR.. 36

4.0 Data Presentation and Analysis. 36

4.1 Analysis of Questionnaire. 36

4.2 Data Presentation and Analysis. 38

CHAPTER FIVE.. 48

5.0 Summary of Findings, Conclusion, Recommendation and Suggestion for further Studies 48

5.1 Summary of finding. 48

5.2 Conclusion.. 49

5.3 Recommendations. 49

5.4 Suggestion for Further Studies. 50

Bibliography. 51

Appendix. 52

ABSTRACT

The effort of this project is to provide thorough understanding of recapitalisation and its significance on the capital base of a limited liability company. This project work is attempted to look into the relevant options of recapitalisation. It is divided into five main chapters and each specifies the main division of the aspect of the findings, the introduction, and literature review research methodology, data presentation and conclusion. The chapters above highlighted the meaning of recapitalisation, its significance on capital base and the relevant options of recapitalisation i.e. capital market and merger and acquisition. The review of past authors and opinion of the respondents were sought. The data collected were analysed using chisquare and it was recommended that the best option of recapitalisation is through merger and acquisition.