Evaluation of Merger and Acquisition Implementation: Five Cases of M&A Bank in Indonesia

Nurlaili Putri Desyanti, Toto Rusmanto

Abstract

Mergers and Acquisitions (M&A) is an attempt to combine two or more companies into one that is carried out with encouragement in the form of certain motives that the company wants to achieve, where the motives determined by each company are certainly different. This study aims to determine whether the implementation of M&A carried out by each company achieves the target in accordance with the company's initial goals when planning a merger both in terms of economic performance such as the benefits obtained and the effectiveness of lending as well as non-economic performance which includes corporate governance and development achieved. This research will focus on banking companies in Indonesia, namely 5 bank cases that experienced M&A in the period from 2011 to 2021 and analysis of data obtained from secondary data in the form of annual reports for every 3 years before and after each bank. This research was conducted using comparative quantitative analysis using the RGEC method (Risk, Good Corporate Governance, Earnings & Capital), which is a method for measuring the soundness of banks in Indonesia; however, in this study, researchers will also discuss the development and expansion carried out by each bank after a merger, of course as a form of strategy in the success of its business. Perhaps there have been many studies discussing this topic, but here an update is being carried out by trying to analyze one by one the bank merger cases to see more varied results.

 

Keywords: bank merger, merger & acquisitions, RGEC method, expansion.

 

DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.61.3


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