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Finance Paper





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Question 1

The banks will have the difficulty of maintaining the corporate culture of their institutions. The merging banks have different cultures, and they have different operation methods. The banks will have to ensure that they are able to maintain a corporate culture that the employees are comfortable with, since this will determine the effectiveness of the employees. The acquiring banks will have the difficulty of cutting costs and making revenues. The bank mergers are one way of cutting costs and the banks will have to find ways of doing this. This may involve hard decisions such as laying-off some of the staff members or cutting down on some expenses. This decision will not be easy, and it will involve a consensus between the banks. The banks will have the difficulty of maintaining their customers. Some of the customers may be hesitant, and they may not want to continue using the banks because they fear that the merger might not work.

Banks will have to increase their revenues and profits as a way of ensuring that they retain their customers and continue to instill confidence in the shareholders. The acquiring bank has to retain the customers of the acquired banks. They have to ensure that customers of the acquired bank do not experience any changes that will want them to look for other alternatives (Marlin, 2003). The banks operate under different principles, and the acquired bank may have had some services, which the acquiring bank does not have. If the acquiring bank does not intend to maintain the services, then it will have to develop other services that will meet the customers’ needs in the same manner. Otherwise, it will have to convince the customers that it has sufficient services and products to meet all their needs (Baxter, 2009).

Question 2

Understanding time value for money is important for my personal and professional development. Money is more valuable in the present because of the interest earned and the ability to make investment decisions in the present. Understanding the concept of time value for money is essential in making decisions related to financial management. This requires a person to know how to calculate money through time, thus enabling one to know the value of future money in the present or the value of present money in the future. This includes knowing how to calculate simple and compound interest, as well as the future and present value of dollars and annuities. Companies dealing with investment or any other company making financial decisions need this information. Almost all institutions need people with such knowledge, and this will ensure that I increase my chances of employment.

Mergers and acquisitions have been in existence for a long time, and they have redefined the way people understand businesses. To some people, they have meant a way of making money as they have led to the acquisition of businesses, which have led to growth and expansion of businesses, as well as increased revenues and profits for the business. However, to other people, it has meant the loss of jobs and an income, and loss of a brand, as the acquired company merges with another. Some mergers and acquisitions fail while others succeed. Understanding the reason why this happens is essential. It involves a lot of research aimed at understanding the markets and the environment. Such information is essential, especially for analysts who have to advise the top management on whether the company should acquire another. It is also crucial to understand why companies choose to merge, as this will guide the acquiring company in avoiding the challenges and pitfalls associated with mergers and acquisitions (McCarthy & Dolfsman, 2012).


Baxter, L. (2009). Size really does matter. Retrieved from http://baselinescenario.com/2009/05/04/guest-post-size-really-does-matter/

Marlin, S. (2003). Bank merger faces IT obstacles on way to savings. Retrieved from http://www.informationweek.com/bank-merger-faces-it-obstacles-on-way-to/15800180

McCarthy, J. K., & Dolfsman, W. (2012). Understanding mergers and acquisitions in the 21st century: A multidisciplinary approach. United Kingdom: Palgrave Macmillan

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Finance. (2018, Dec 06). Retrieved from http://protectedio.com/paper-on-finance/