TITLE PAGE

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 DECLARATION

I hereby declare that the project work entitled “A STUDY OF MERGER AND
ACQUISITION OF NEPAL FINANCE LTD.” submitted to the Faculty of Management,
Tribhuwan University, Kathmandu is an original piece of work under the supervision of Mr.
Rajendra Prasad Upreti, faculty member, Rolwaling College, Kumaripati, Lalitpur and is
submitted in partial fulfillment of the requirement for the award Degree of Bachelor of Business
Studies (BBS). This project work has not been submitted to any other university for the award of
any degree or diploma.

Signature ……………………….

Mr Krishna Prasad Shrestha

Date: April 23, 2023

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 SUPERVISOR’S RECOMMENDATION

The project work report entitled “A STUDY OF MERGER AND ACQUISITION OF

NEPAL FINANCE LTD.” submitted by Krishna Prasad Shrestha of Rolwaling College,
Kumaripati, Lalitpur, is prepared under my supervision as per the procedure and format
requirements laid by Faculty of Management, Tribhuwan University, as partial fulfillment of the
requirements for the degree of Bachelor of Business Studies (BBS). I, therefore, recommend the
project work repost for evaluation.

Signature ……………………….
Mr Rajendra Prasad Upreti
Rolwaling College
Kumaripati, Lalitpur
Date: April 23, 2023

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 ENDORSEMENT

We hereby endorse the project report entitled “A STUDY OF MERGER AND

ACQUISITION OF NEPAL FINANCE LTD.” submitted by Krishna Prasad Shrestha of
Rolwaling College, Kumaripati, Lalitpur in partial fulfillment of the requirements for degree
of the Bachelor of Business Studies (BBS) for external evaluation.

…………………. ………………….
Signature Signature
Mr. Rajendra Prasad Upreti Mr. Rajendra Prasad Upreti
Chairperson, Research Committee Campus Chief, Principal
Rolwaling College Rolwaling College
Kumaripati, Lalitpur Kumaripati, Lalitpur
Date: April 23, 2023 Date: April 23, 2023

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 ABSTRACT

This project attempts primarily about mergers and acquisitions of Finance sector of Nepal. In this
project, I have included –
a) The Process of Acquisition and its Strategies
b) Finance Merger and Employee’s Satisfaction
c) Mergers and Acquisitions Link to Human Issues
d) Influence of Mergers and Acquisitions on Job Security
e) Influence of Mergers and Acquisitions on Pay/Remuneration
f) Influence of Mergers and Acquisitions on Organization
g) Challenges and Opportunities in Finance Sector

I am doing full study on the acquisition of “Nepal Finance Limited” including what were the
reasons behind the acquisition and how it impacted the financial position as well as the
employee’s status of Nepal Finance Limited.
This analysis helps to see the current performance condition of the finance compare to past
performance. The study was based on historical data and analysis of the data was quantitative in
nature. Different analysis tools such as descriptive statistics and regression equation had been
adopted for data analysis. In addition, correlation coefficient between the variables had also been
used for the analysis of effects by the variable. In this study statistical parameters are calculated
with the help of computer via Excel, data analysis tool pack.

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 ACKNOWLEDGEMENT

The report has been prepared in the partial fulfillment of the requirement for degree of Bachelor
Degree in Business Studies (BBS). The main objective of the fieldwork report is to present the
conclusion of the study of “A STUDY OF MERGER AND ACQUISITION OF NEPAL
FINANCE LTD.” I shall express my gratitude to those helping hands without their help the
assignment of writing this report would have been very much difficult. I owe thanks to my
respected teachers, who helps me to prepare this report.

I would like to extend my heartily thanks to all who assisted directly and indirectly with their
valuable suggestions and ideas while preparing the report.

Thank you,

Krishna Prasad Shrestha

BBS (4th Year)

Rolwaling College, Kumaripati, Lalitpur

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 Table of contents page no.

Contents
Title page
Declaration
Supervisor’s Recommendation
Endorsement
Abstract
Acknowledgement
Table of Contents
List of Tables
List of Aigures
Abbreviations

CHAPTER I
INTRODUCTION...............................................................................................................................1
1.1 Background of The Study....................................................................................................1
1.2 Profile of The Organization.................................................................................................2
1.2.1 Nepal Finance Limited..............................................................................................2
1.2.2 Acquisition of Lalitpur Finance Limited by Nepal Finance Limited........................3
1.3 Statement of The Problem...................................................................................................4
1.4 Objective of The Study........................................................................................................4
1.5 Significance of The Study...................................................................................................5
1.6 Review of Literature............................................................................................................5
1.6.1 Difference between mergers and acquisitions...........................................................6
1.6.2 Types of merger and acquisition...............................................................................6
1.6.3 Motives for merger and acquisition...........................................................................7
1.6.4 Finance Merger and Employee’s Satisfaction...........................................................8
1.6.5 Mergers and Acquisitions Link to Human Issues.....................................................9
1.6.5 Influence of Mergers and Acquisitions on Job Security...........................................9
1.6.6 Influence of Mergers and Acquisitions on Pay/Remuneration...............................11
1.6.7 Influence of Mergers and Acquisitions on Organization........................................12
1.6.8 Conceptual Framework...........................................................................................13
1.6.9 Merger by Laws of NRB 2011................................................................................15

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 1.6.10 Review of previous works.....................................................................................17
1.7 RESEARCH METHODOLOGY......................................................................................18
1.7.1 Introduction.............................................................................................................18
1.7.2 Research Design......................................................................................................18
1.7.3 Population and Sample............................................................................................18
1.7.4 Nature and Sources of Data.....................................................................................18
1.7.5 Data Collection........................................................................................................19
1.7.6 Data Processing Technique.....................................................................................19
1.8 Limitations of The Study...................................................................................................19
1.9 Organization of The Study.................................................................................................20

CHAPTER II
RESULTS & DISCUSSIONS...............................................................................................21
2.1 Background........................................................................................................................21
2.2 Presentation and Analysis of Data.....................................................................................21
2.2.1 General Demographic Analysis...............................................................................21
2.2.2 Gender wise Distribution of Respondents...............................................................21
2.2.3 Education wise Distribution of Respondents..........................................................22
2.3.1 Job Security.............................................................................................................23
2.4 Major Findings...................................................................................................................32

CHAPTER III
CONCLUSION, SUMMARY & REFERENCES...............................................................34
3.1 Summary............................................................................................................................34
3.2 Conclusion.........................................................................................................................35
3.3 Recommendation...............................................................................................................35
BIBLIOGRAPHY..................................................................................................................37

APPENDIX

List of tables

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Table no. Title Page no
Table 1.7.5.1: table to show data collection of employees……………………………… 19
table 2.2.2.1: table to show gender of the respondents …………………………………. 22
table 2.2.3.1: table to show education wise distribution of respondents ……………….. 22
table 2.3: table to show finance provides enough time ………………………………… 24
table 2.4: table to show security in this finance after merger and acquisition ……......... 24
table 2.5: table to show appropriate career plan ……………………………………….. 24
table 2.6: table to show proud to be an employee of this finance ……………………… 25
table 2.7: table show response regarding job security …………………………………. 25
table 2.8: table to show appropriate job design after merger and acquisition ..………… 26
table 2.9: table to show plan, policy and strategy …………………………..…............... 26
table 2.10: table to show positive impact on leadership style …………………………... 26
table 2.11: table to show efficiency of management ……………………………………. 27
table 2.12: table to show management communication ………………………………… 27
table 2.13: table to show response regarding organization …………………………….. 28
table 2.14: table to show satisfied with salary ……………………………………......... 28
table 2.15: table to show appropriate career growth plan ……………………………… 29
table 2.16: table to show positive impact on bonus ………………………………......... 29
table 2.17: table to show providing more non-monetary benefits …………….……….. 29
table 2.18: table to show response regarding pay ……………………………………… 30
table 2.19: table to show finance using advance technology ………………………….. 30
table 2.20: table to show working culture of this finance ………………………..……. 31
table 2.21: table to show providing more training ………………………..………........ 31
table 2.22: table to show availability of equipment …………………………..……….. 31
table 2.23: table to show response regarding working condition ……………………… 32
table 2.24: table to show coefficient of Cronbach’s alpha ……………………...……… 33

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 List of figures
Fig no. Title Pg no
Fig 1.6.8.1: figure to show Conceptual Framework of M&A……………….…………… 13
Fig 1.6.8.1: figure to show Conceptual Framework of M&A Integration ………………. 13
Fig 1.6.8.1: figure to show Conceptual Framework of M&A Repair ………………........ 14
Fig 1.6.8.1: figure to show Changes in External Factors due to M&A ………………….. 14
Fig 1.6.8.1: figure to show Conceptual Framework of Variables………..………………. 15
Fig 2.2.3.1: figure to show Gender wise Distribution of Respondents ………….……….. 22
Fig 2.2.3.2: figure to show Education wise Distribution of Respondents ……………….. 23

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 ABBREVIATIONS

M&A: Merger and Acquisition

NEFINSCO: Nepal Finance Limited
Ltd.: Limited
BAFIA: Bank and Financial Institutions Act
BFIs: Bank and Financial Institutions
B.S.: Bikram Sambat
AGM: Annual General Meeting
ATS: Automated Trading System
CEO: Chief Executive Officer
Co.: Company
CRO: Company’s Registrar Office
ABBS: Any Branch Banking System
FY: Fiscal Year
SCT: Smart Choice Technology
CSR: Corporate Social Responsibility
FPR: Financial Performance Report
&: and
NRB: Nepal Rastra Bank
NPL: Non-performing loan
i.e.: that is
C & B: Cash and Bank
BOD: Board of Directors
WAN: Wide Area Network
SED: Sustainable Economic Development
SMC: Securities Marketing Centre

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