Accounting for Business Combinations-Free-Samples

Introduction

In general business combinations are a common way to for the companies to expand in terms of its size rather than able to gain only a temporary benefit pertaining to the internal activities. At the time of the business combination it has been seen that the acquirer reports the consolidated results which combines the financial statements with those of the acquire. Bendigo Adelaide Bank formed the merger with Adelaide Bank in 2007. The merger process was implemented by the “Scheme of Arrangement of Adelaide Bank”. The various discourse of the study aims to highlight the rationale for the merger activity (Bendigobank.com.au. 2018).

Discussion

The intention of business combination of both the banks is seen with the various activities to create a unique partner focused and customer focused financial entity. The merger rationale was also seen to be based on bringing the specialist skills among the various type the workers and ensure delivery of a more cost-effective solution for the customers and business partners. The combination process is further seen to be committed to create a sustainable value for the shareholders. Some of the main rationale for the bank post merge process is recognised to be depicted with the various types of the career opportunities with a more large and diversified operations. The head office functions will be split among the existing sites and the main form of the combination will be depicted with the 4000 staff across every state and territory in Australia. In addition to this, the partners in both the bank is depicted to be getting the continued support with the partnership model. These partners will further see a greater variety in from of the product access. This is further seen to be backed by processing capability post combination of both the banks (Bendigobank.com.au. 2018).

Some of the other rationale is considered with the focus on increasing the value of the shareholders in the company with an enhanced financial profile and market capitalisation of $ 4 Billion. Some of the main form of the financial advantages for the merger process has been seen to be based on creating a diversified business and improving the loan management system which was lacking in both the bank before the combination process. It is recognised that the presence of the larger wealth management sector after the combination process will be conducive in enlarging the overall business structure of the company and at the same time the bank will be able to gain the increased market capitalisation of $ 4 billion in the ASX 100 index. The banks will be further able to witness 80,000 retail shareholders. In addition to this, the national expansion is also considered with covering the branch support in more than 380 branches covering all States and Territories (Bendigobank.com.au. 2018).

Some of the various types of the rationale for the merger process was recognised to be evident with customers having greater access across more number of products they will be able to gain access to more number of ATM through more than 380 company with a single bank account. These factors are seen to directly conducive to improve the current account and savings account worth. Moreover, the community account will be able to grow in terms of the different type the aspects of the capacity for growth in “South Australian” branch network (Bendigobank.com.au. 2018).

Henceforth, it has been seen that the result of the merger was complementary to both the banks thereby creating major opportunities to such communities who were seeking for long term service with the banks. It is further discerned that the overall merger process was introduced with the reason for foreshadowing of pre-tax profit increase of than 50%. In term of the Adelaide Bank, pre-merger the bank suffered from limited access to the branches in South Australia. Bendigo is known as the leader for having the access to a large number of branch network in Australia and with the support of Bendigo bank the banks will be able expand the business for themselves and the customers (Motley Fool Australia 2016). 

Conclusion

The important depiction for the merger process is discerned with creating more value for the customer and able to introduce new form of the products. The various types of the other significant advantages are considered with to create a sustainable value for the shareholders. The various types of the career opportunities with a more large and diversified operations. The head office functions will be split among the existing sites and the main form of the combination will be depicted with the allotment of 4000 staff across every state and territory in Australia.

References

Bendigobank.com.au. (2018). Adelaide Bank and Bendigo Bank announce intention to merge - Bendigo Bank. [online] Available at: https://www.bendigobank.com.au/news-and-media/news/news-archive/adelaide-bank-and-bendigo-bank-announce-intention-to-merge [Accessed 13 May 2018].

Bendigobank.com.au. (2018). Bendigo Bank and First Australian to merge - Bendigo Bank. [online] Available at: https://www.bendigobank.com.au/public/news-and-media/news/news-archive/bendigo-bank-and-first-australian-to-merge [Accessed 13 May 2018].

Bendigobank.com.au. (2018). Bendigo Bank confirms conditional merger proposal received from Bank of Queensland - Bendigo Bank. [online] Available at: https://www.bendigobank.com.au/news-and-media/news/news-archive/bendigo-bank-confirms-conditional-merger-proposal-received-from-bank-of-queensland [Accessed 13 May 2018].

Motley Fool Australia. (2016). Why I’m selling my Bendigo and Adelaide Bank Ltd shares. [online] Available at: https://www.fool.com.au/2016/11/30/why-im-selling-my-bendigo-and-adelaide-bank-ltd-shares/ [Accessed 13 May 2018].