The Role Of Mergers And Acquisitions For The Financial Performance Of Santander Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2545 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Mergers and acquisitions are a means of entry into a given market by the firm. The first wave of mergers and acquisitions began in 1897 and ended in 1905 with many small firms being transformed into large organizations. Other waves of mergers and acquisitions followed with the last wave (fifth wave) being realized in the 1990s. Don’t waste time! Our writers will create an original "The Role Of Mergers And Acquisitions For The Financial Performance Of Santander Finance Essay" essay for you Create order Many organizations including banks have used this method to venture into other international markets. Since its establishment, the Santander Group has realized increased growth and performance through cross border mergers and acquisitions. The most common from of mergers in the banking industry is the horizontal integration. When the merging companies have different loan structures credit risk strategies, the post merger performance of the company is high. Table of Contents 3 Introduction 4 Literature Review 4 Mergers and Acquisition 4 Recent History of Mergers and Acquisitions 7 Empirical Support 9 Efficiency ratios 10 Return on Assets ratios 11 Gross Profit Margin 12 Return on Earnings 12 BIS Ratio 13 Non-Performing Loans Ratio 14 Non-Performing Loans Coverage Ratio 14 Conclusion 15 References 17 Introduction Integration in a given firm and/or industry refers to the process of organizing production based on organizational unification as well as technology of different production processes. The management of any given firm should employ a method of integration which offers the specific company technological efficiency. A firm is said to be technologically efficient if it produces a certain quantity of output by employing the lowest amount of production factors and / or inputs. Integration method employed should also offer a given firm economic efficiency. Economic efficiency is the ability of a given company to produce a specific output level using the lowest possible costs. Production can be organized in three different ways (Craig and Campbell, 2005, p. 114). This study examines the impact of mergers and acquisition on the performance of Santander Group of banks between 2002 and 2010. Literature Review Mergers and Acquisition According to Rajeev and Yun (2009, p. 3), diversification is the process through which an organization enters new processes of business in the market with the possibility of manufacturing new products. Mergers and acquisitions are a form of entry that a firm may use to enter a market. Many firms in the financial industry have utilized this means to enter new markets. Mergers and acquisitions can take the form of vertical integration, horizontal integration or conglomerates. Horizontal integration is a form of integration in which firms combine at the same stage of production. Ison and Griffiths (2001, p. 75) note that horizontal integration may help a certain company to increase their share value. Firms that undertake horizontal integration do benefit from economies of scale that result from capacity expansion, technical economies of scale, social economies of scale, financial economies of scale, marketing and managerial economies of scale. Vertical integration is the ability of the firm to own subsidiaries downstream and upstream it line of production. Vertical mergers involve backward and forward linkages in an industry. Backward vertical integration occurs when firms merge or acquire subsidiaries that supply it inputs. Firms that undertake vertical integration realize reduced transaction costs hence increased profitability. Conglomerate integration occurs when an enterprise combines with other companies, which operate in different line of production. Companies Conglomerate to diversify their portfolio and hence spread the risk. These types of diversification are not common in the banking and financial industry. The most common types of mergers and acquisition in the banking industry are horizontal diversification where banks merge with other banks in other countries. Financial institutions such as banks do diversify through mergers and acquisitions because of many reasons. Banks can diversify with the aim of increasing their financial performance, exploiting the available business opportunities or other reasons. According to Shimizu, et al. (2004, p. 341), financial institutions may be influenced by the profit that their competitors are making in the global industry to engage in mergers and acquisitions. Diversification in form of mergers and acquisitions can enable banks to exploit many opportunities in the global economy. For instance, the advance in technology has enabled firms to be managed from different places cheaply. Therefore, banks can undertake mergers due to the ability to management subsidiaries from far. Other reasons for mergers and acquisitions include ability for growth, need to reduce operating costs and increased competition in domestic market. In a study conducted by Badreldin Kalhoefer (2009, p. 5), it was established that banks that participated in mergers and acquisitions increased their financial performance. Despite these findings, the study also established that integration is costly when integrati ng firms have dissimilar terms of loans and size strategies among other factors. According to Altunbas Marques (2008, p. 15) the ability of a strategic fit is an important element in determining the success of mergers and acquisitions in terms of performance. It is important that merging banks have similarities in their balance sheets. A survey by Altunbas Marques (2008) to measure the importance of strategic similarities in mergers and acquisitions indicates that the size of the bank is important in determining the post merger performance of the bank. A large size for a domestic merger compared to the size of the bidder results in lower post merger performance. However, for cross border mergers, a large size for the target firm is important because it results in high post merger performance for the bank. Empirical literature indicates that a high pre-merger return on capital has a negative effect on the performance of the bank after the merger both for domestic mergers and cro ss border mergers. Therefore, banks that perform well before the merger may not be able to improve their performance after merging because their base rate of performance was initially high. The analysis of efficiency of banks measured in terms of cost to income ratio indicates that they are counter productive in performance perspective. This is due to the difficulties that banks face in integrating the different their cost structures that are different in the short term. According to Altunbas Marques (2008, p. 17), the differences in capital structure between the merging banks enhances the post merger performance. Capital structure differences for cross border merger is useful at low performance levels. It is difficult for banks involve din cross border mergers to integrate institutions with capital structure that are different. Return on earnings (ROE) is usually positive after mergers. Recent History of Mergers and Acquisitions There are five merger waves with the fifth having occurred from the 1990s. The first merger wave occurred between 1897 and 1904. This fist merger was characterized by the transformation of firms from small firms to large dominant corporations. The first wave occurred about ten years after passing the Sherman antitrust act. The courts had a difficult time in interpreting the act leading to lack of antitrust enforcement. However, the situation changed in 1914 when the Federal Trade Commission was established. The second wave of mergers occurred between 1916 and the first economic down turn in 1929. Horizontal integration was very common during this phase leading to increased oligopolies. The phase ended with the market downturn. The third wave of mergers was witnessed between 1965 and 1969. The phase witnessed conglomerate acquisitions that were witnessed because organizations wanted to expand but were limited by antitrust laws. The fourth wave of mergers was witnessed in the 1980 s while the fifth was realized in the 1990s. All of the merger and acquisition waves happened during periods of economic expansion while they ended during period of economic slump. The current conditions for mergers and acquisitions are still the same. However, there are challenges that affect the merging firms. Firms have mismatch in expectations. As one firm may expect the valuation of the firm after a merger to rise, the other may be expecting the valuation to decrease. The business environment is still risky and raising enough capital for carrying out mergers and acquisitions is challenging. Since financial institutions are valued highly, raising enough capital for acquisition of a given company is challenging. Major legal challenges facing mergers and acquisition in the world today are issues related to regulation, tax liabilities and guidelines to pricing. Santander Group has always utilized mergers and acquisitions to exploit the existing opportunities in the banking in dustry throughout the world. The recent history of Santander group mergers and acquisitions include the acquisition of Banco Santiago in 2002, acquisition of Italian consumer finance company in 2003, Abbey National bank in 2004 and a merger with Sovereign Bancorp in 2005. In 2007, the bank merged with Fortis SA/NV and The Royal Bank of Scotland Group plc to acquire ABNAMRO Holdings. In 2008, the bank bought British mortgage bank Alliance and Leicester plc. The bank was also nationalized in Venezuela in 2008. As the effects of the global economic crisis was being felt over the world, the bank managed to acquire some insolvent banks such as Bradford Bingleys client deposits (Banco Santander, 2010). In 2009, the bank sold part of its Brazilian unit while in 2010 the bank bought back 24.9% of Santander Mexico from the Bank of America. From all these mergers and acquisitions, the bank exploited banking and business opportunities in different countries. The long-term performance of th e stock of the bank has been good since 2002 to 2010. The performance of the stock of the company as indicated in the graph below shows that the stock of the bank performed well until the year 2009 when the stock price decreased. It seem that the stock price of the bank is improves when the merger has a positive impact on the performance of the bank and decreases when the bank performance is poor. This is the reason for the low fluctuations in the stock price. However, the large decrease in the share price in 2009 can be attributed to the global economic crisis rather than mergers and acquisitions. Source: London Stock Exchange Empirical Support Mergers have always led to better performance of involved companies. According to Altunbas Marques (2008), banks that diversify through mergers and acquisitions usually perform better. Empirical evidence from Santander Group corresponds to these findings from past studies. To prove the impact of mergers and acquisitions to the performance of banks, this study will analyze five ratios from the bank. Efficiency ratios The efficiency ratios indicate the level of receivable in an organization, the repayment period, equity usage and the use of machines and inventory in the bank. The Santander Group has been involved in many mergers over a period. Since 2002-2009, the bank has realized fluctuating efficiency even after mergers and acquisitions. From the table below, the efficiency of the Santander group has been fluctuating over years. Efficiency of the bank decreased consecutively since 2002 from 52.28 to 47.44 in 2004. However, efficiency of the bank began to increase again in 2005 after the Santander Group merged with a U.S. bank Sovereign Bancorp. However, the subsequent mergers and acquisition that were made by the bank did not improve the efficiency further, but led to its gradual decrease from 52.82 in 2005 to 41.7 in 2009. Fig 1 Year / ratio 2002 2003 2004 2005 2006 2007 2008 2009 Efficiency 52.28 49.34 47.44 52.82 48.53 45.5 44.6 41.7 ROA 0.81 095 1.02 0.91 1.0 0.98 0.96 0.86 ROE 12.42 14.48 15.98 16.64 18.54 19.61 17.07 13.90 BIS ratio 12.64 12.43 13.01 12.94 12.49 12.7 13.3 14.2 Non performing loans ratio 1.89 1.55 1.05 1.89 0.78 0.95 2.04 3.24 NPL Coverage 139.94 165.19 165.59 182.02 187.23 151 91 75 Gross profit margin 3.41 3.31 1.95 2.04 2.17 2.52 2.95 3.36 Table 1 Return on Assets ratios The return on assets ratio indicates the profitability of the bank when compared to the assets of the firm. Fig 2 The return on assets ratio indicates that initial mergers made by the bank in 2002 and 2003 led to increased performance of the bank. The return on assets increased from 0.81 in 2002 to 1.02 in 2004. However, the merger of the bank in 2004 led to reduced performance in 2005 as is indicated by reduced return on assets. The ratio rose to 1.0 in 2006 and then declined again gradually to 0.86 in 2009. Gross Profit Margin The gross profit margin indicates the profitability of an organization. The gross profit margin of Santander as indicated in table 1 fluctuated for the eighth years between 2002 and 2010. The ratio fell from 3.41 in financial year 2002 to a low of 1.95 in 2004 and began to rise again to a high of 3.36 in 2009. The fall and rise in the ratio indicates that initial mergers did not help in improving the profit of the company. However, subsequent mergers helped the company improve its profit. Return on Earnings This ratio measures the income that the bank realizes on invested shareholdersà ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢ equity. Fig. 3 below provides the return on equity ratio for Santander Group since the year 2002. From the figure, it is clear that the mergers and acquisitions that the bank made led to the increase in performance that in turn led to increased return on investorsà ¢ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ÃƒÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¾Ãƒâ€šÃ‚ ¢ equity. Return on equity rose from 12.42 in 2002 to 19.61 in 2007 before declining to 13.9 in 2009. The increase in the ratio can be attributed to the mergers made by the bank during the period 2002 to 2006. Fig 3 BIS Ratio The solvency of a given financial institution such as bank is given by the BIS ratio. The ratio provides the capital of the bank that is risk bearing and the risk weighted assets. The BIS ratio is an international standard that measures the stability assets and capital of internationalizing banks. The ratio maintains a balance between assets and capital. Fig 4 The BIS ratio for Santander Group decreased from 12.64 in 2002 to 12.43 in 2003 before increasing to 13.01 in 2004. The ratio then continues to increase in subsequent years reaching a high of 14.2 in 2009. This indicates that although some mergers led to the decrease in the solvency of the bank, later mergers and acquisitions that were conducted by the bank led to increased solvency of the bank by increasing its capital adequacy. Non-Performing Loans Ratio This ratio measures the level where loans are at default due to lack of performance. The ratio for the Santander group fluctuated over time. It initially reduced from 1.89 in 2002 to 1.05 in 2004 only to increase again to 1.89 in 2005, 0.78 in 2006 and 3.24 in 2009 (see table 1). Non-Performing Loans Coverage Ratio The NPL coverage ratio measures any loss that a bank may realize resulting from loss of non-performing loans. The ratio is calculated by the division of probable non-performing loans by the total non-performing loans of the bank. The NPL coverage ratio of Santander has been improving over years especially since 2002 to 2009. The ratios was 139.94 in 2002 and it kept on improving to as low as 75 in 2009 (see table 1). The reduction in the ratio indicates the positive effect of mergers that have led to reduced loss that the bank could suffer form non-performing loans. Conclusion Santander Group bank has been involved in various mergers and acquisitions as outlined in the study. In all the mergers, the bank sought to exploit the available opportunities in the business environment in the banking industry. although some barriers such as insufficient capital has affected the merging and acquisitions of the bank leading to the sale of some of its subsidiaries, the group has always managed to come back and merge with other banks. The above ratio analysis indicates that mergers and acquisition of Santander Group had some effect on the performance of the bank. Santander Group has been involved in a number of mergers and acquisitions that have led to improved financial performance of the bank. Just as the literature review indicated that mergers and acquisition could lead to improved performance of the firm, the empirical findings of Santander group confirmed the findings. The ratios analysis indicated that not all mergers could improve the financial performance of the bank. While some mergers led to improved profitability performance that is designated by increased ROE, ROA and solvency, some mergers can lead to reduced performance indicated by fluctuating efficiency. In conclusion, mergers and acquisition lead to improved performance of an organization. Total word count 2685 (not including page 1 cover page).

Giving Children ADHD Medication - 1657 Words

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Benefits Under The Section Taxation Rulings-Myassignmenthelp.COm

Question: Discuss About The Benefits Under The Section Taxation Rulings? Answer: Introducation According to Australian Taxation Tax, it is noted that Fringe Benefit Tax is the tax that is paid by the employers for paying benefits as it is offered to the employees (Grange, Jover-Ledesma and Maydew 2014). It takes into account family of the employees as well as other associates that are linked together. The benefits that are paid as additional can be treated as part of wages or salaries of the employees. For example, the benefits that are taken by the directors from the income tax as well as FBT need to be calculated as taxable value as provided by Fringe benefit tax (Krever 2013). At the time of preparing Fringe benefit tax return for the year ended 2016/2017 year, an individual can continue to use lists of eligible as well as ineligible vehicles or the principle-based approach or methods. In addition, the eligible as well as ineligible vehicle lists can be removed after 2017 (Grange, Jover-Ledesma and Maydew 2014). To that, the product mentioned are structured for offsetting the rate of interest that is maintained by the clients. The above table explains the calculation of loan fringe benefits under the section Taxation Rulings TR 93/6. In this section, it explains how business plans for their loan offset that in actual is known as interest offset accord. It is further concluded by saying that paying any sum of income legal responsibility is taken into considered when Brian is unrestricted from paying interest by the bank (Krever 2015). It is important to understand person who are liable to pay for fringe benefit tax (Grange, Jover-Ledesma and Maydew 2014). This is where any person or employer offers any of the fringe benefits to his employee or the associate of the employee that aligns with status of employment as paid for fringe benefit tax. Furthermore, the employee for which the employer is needed to pay fringe benefit tax can be done for past, present or for future employee. The imposition of fringe benefit tax is mainly proposed to tax companies on situation provided to their employees as mentioned in the budget among the corporate and tax circles (Morgan, Mortimer and Pinto 2013). The fringe benefit provided by an employer to his employees in addition to cash salary or wages payments considered as fringe benefit tax (Coleman and Sadiq 2013). Applications In addition, the rulings highlight evaluating regarding the taxable position of co-owners of those who are not responsible to carry out their values within actions. From the given situation, it is noted that Jack and Jill need to evaluate their taxable position of the rental property. In addition, the loss of profits gained from the leasing possessions in actual need to be managed through co-ownership of rental property and deal out business proceeds and losses. Thus, the co-owners of the leasing possessions named as Jack and Jill will be investment the property as joint ventures and this act as an ordinary issue in the given case state of affairs (Sadiq et al. 2014). As far as Taxation ruling of TR 93/32 is concerned, it highlights the fact when acceptability for the purpose of income tax can be treated as net income profit or loss. Here, Jack gets a share of 10% and Jill will get 90% of the total profit gained (Grange, Jover-Ledesma and Maydew 2014). In that case, if Jack and Jill both sell property when the cost base as well as reduced cost needs to be taken into addressed with gains or losses in alignment of interest ownership for specific property The provided case is in accordance with the law named as IRC v Duke Westminster (1936) that is shown in specific event for the purpose of avoiding tax. In this case, one gardener was employed by the dyke who actually paid from the post-tax income of Duke (Morgan, Mortimer and Pinto 2013). Furthermore, it is noted that the tax purpose is chargeable when he stopped paying the gardener irrespective of paying for the same amount of money. The present case deals with taxation ruling that enables Duke for claiming deduction from his taxable income as it get reduced with the income tax liability. As far as present case is concerned, each person is entitled for planning the tax avoidance based on the current requirement or preference where no person can be forced to pay higher amount of tax. This present case study has proper relevance from Australia where it is clearly mentioned that each of the individual has the right to select their own transaction where taxpayer achieves the advantage o f given asset as a matter of fact (Novikov, Ling and Kordzakhia 2014). The person will be able to select or choose the option of the transaction as it will subject to tax or subject that is deducted tax as compared to others. The case law states the fact about principles where every person or individual should be permitted to understand the tax affairs and laws properly to avoid further confusion. The cases explained reveals the fact that courts have looked over the overall impact and made the decisions accordingly (Schreiber 2013). As far as present case is concerned, the transaction has to be pre-arranged artificially as well as not served properly for commercial activities. The cases explained reveals the fact that courts have looked over the overall impact and made the decisions accordingly. As far as present case is concerned, the transaction has to be pre-arranged artificially as well as not served properly for commercial activities (Davis et al. 2015). In the current complex state of affairs, it is noted that the standard within Australia depicts the fact that if an individual start achieving success for making the results secured, then the Inland Revenue might be current as a proposal as they cannot force anyone for paying any increased amount of tax (Woellner 2013). The provided case on Bill relates to taxable income as it is explained by the taxpayer as Bill is the Primary Producer as under Section 6 (1) of the ITAA 1997. As far as current situation is concerned, it is noted that Bill owns a large piece of land where there are several pine trees (Woellner 2013). In addition, Bill principally aims at using the land for grazing sheep as well as wanted to have it cleared. To that, it is noted that the logging company had grabbed from his piece of land. These aspects mainly explain assessable income whether the taxpayers gets indulged with the activities of forestry industry. To that, the forest operations take into account felling of trees in a forest or plantation where the taxpayers show no interest about the planted trees (Douglas et al. 2014). Under Taxation Ruling TR 95/6 that explain about Income tax dealing with primary production as well as forestry that highlights different deductions that are made available to the primary producers that is engaged at the time of conducting forest operations or activities (Coleman and Sadiq 2013). In addition, the deductibility of these expenses cannot be altered by simple fact that an individual derive income from carbon sequestration activities as it is carried on in conjunction and aligns according to forestry activities or operations (Petty et al. 2015). Here, it is important to consider the fact that general deduction is not allowed for cost of planting trees when the individual purpose is participating in carbon sequestration activities as well as those trees as it is not intended to be felled in a business of forestry. In addition, it is because of the cost for planting in these conditions and is known as capital expenditure. Capital expenditure for planting trees can be percei ved as other income tax treatment that majorly depends upon the context in which expenditure is incurred when the trees are treated as horticultural plants (Coleman and Sadiq 2013). The trees that are used for sale of products or parts and the cost for establishment are mainly written off after referring to the effective life of the plant. Hence, trees that are used solely for carbon credit arrangements are mainly not cultivated for any of the products or parts as it does not constitute horticultural pants for the purpose of applying the horticultural plant deduction as shown in the section (Taylor and Richardson 2013). As per the case, the concerned sale combines either completely or partial assets of the business (Ross, Walker and Walker 2017). In that case, McCauley v The Federal Commissioner of Taxation payments mainly obtains from the grantor under the right of performing the operations in correct way. From the given case study, it is noted that Bill is treated as a basic producer because he gets engaged into the process of primary production in accordance to subsection 6 (1) of the Income Tax Assessment Act 1936 (Coleman and Sadiq 2013). To that, the forest operations take into account felling of trees in a forest or plantation where the taxpayers show no interest about the planted trees. In that case, McCauley v The Federal Commissioner of Taxation payments mainly obtains from the grantor under the right of performing the operations in correct way (Woellner et al. 2014). It is concluded that the outcomes from the cases shows that first case is received from the amount of Bill that will be taxable under income tax. As far as second case is concerned, the amount of Bill received by him will be treated as royalty. References Australian Taxation Law Cases 2014. 2014. Pyrmont, NSW: Thomson Reuters. Coleman, C. and Sadiq, K. 2013.Principles of taxation law 2013. Davis, A.K., Guenther, D.A., Krull, L.K. and Williams, B.M., 2015. operations responsible firms pay more taxes?.The Accounting Review,91(1), pp.47-68. Douglas, H., Bartlett, F., Luker, T. and Hunter, R. eds., 2014.Australian feminist judgments: Righting and rewriting law. Bloomsbury Publishing. Grange, J., Jover-Ledesma, G. and Maydew, G. 2014.2014 principles of business taxation. Kenny, P. 2013.Australian tax 2013. Chatswood, N.S.W.: LexisNexis Butterworths. Krever, R. 2013.Australian taxation law cases 2013. Pyrmont, N.S.W.: Thomson Reuters. Krever, R. 2015.Australian taxation law cases 2015. Morgan, A., Mortimer, C. and Pinto, D. 2013.A practical introduction to Australian taxation law. North Ryde [N.S.W.]: CCH Australia. Morgan, A., Mortimer, C. and Pinto, D. 2013.A practical introduction to Australian taxation law. North Ryde [N.S.W.]: CCH Australia. Novikov, A.A., Ling, T.G. and Kordzakhia, N., 2014. Pricing of volume-weighted average options: Analytical approximations and numerical results. InInspired by Finance(pp. 461-474). Springer International Publishing. Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin, J.D. and Burrow, M., 2015. Financial management: Principles and applications. Pearson Higher Education AU. Ross, M., Walker, J. and Walker, J., 2017. Multinationals targeted down under.Taxation in Australia,52(1), p.22. Sadiq, K., Coleman, C., Hanegbi, R., Jogarajan, S., Krever, R., Obst, W. and Ting, A. 2014.Principles of taxation law 2014. Schreiber, U. 2013.International company taxation. Berlin, Heidelberg: Springer Berlin Heidelberg. Taylor, G. and Richardson, G., 2013. The determinants of thinly capitalized tax avoidance structures: Evidence from Australian firms.Journal of International Accounting, Auditing and Taxation,22(1), pp.12-25. Woellner, R. 2013.Australian taxation law 2012. North Ryde [N.S.W.]: CCH Australia. Woellner, R. 2013.Australian taxation law select 2013. North Ryde, N.S.W.: CCH Australia. Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D. 2014.Australian taxation law 2014.

Its A Wonderful Life Essays - Films, Its A Wonderful Life

Its A Wonderful life Picture a young child full of life and happiness. The love of his parents shows through his eyes, smile, and tears. Some people would like to think that those things about a child are exactly what make life wonderful. People who think that way have no idea how right they are. Its a wonderful life to know that your parent's dreams live on in you. The dream of a mother; that her son will be a doctor. The dream of a father; that his son will some day become a major league baseball player. Most of all when its all said and done, that a child can say as a man, "Its a Wonderful Life". "It's a Wonderful Life" are true stories about events that took place in my life that will be with me forever. I can remember when I was a little boy, I played my first game of baseball. My grandfather practiced with me the whole week before the game. Catching and throwing that baseball seemed like a basketball in my little hands. My grandfather showed me how to place my feet in the batters box and how to bat. From that day on, I was in love with the game of baseball. Now that I look back I wonder what meant more to me, catching that baseball or the fact that my grandfather taught me the game. As I grew older and more mature I learned a lot about my grandfather. I was told stories about his life and what a great ballplayer he was. He could have gone pro, but he didn't have the support of his parents. Instead he went ahead and joined the army. It would kill most men to come that close to their dreams, but if you ask him it was a wonderful life. I was now a teenager at the age of sixteen, and it was time to get my driver's license. This was a day that every parent dreads, and my mom was one of them. I can remember asking my mother for the car keys so that I could take my road test. I detected a small smile under her rolling eyes and stone hard frown. My mom understood how she felt when she got her license. It meant freedom and responsibility for someone she raised from a baby. I can still remember mom saying, "You damn kids grow up too fast" as a single tear rolled down her face. That night I didn't even leave the house. My mother and I talked for hours about how it was when she was young. It was an enjoyable evening just talking to her. It was a wonderful life. Graduation day from high school never comes soon enough, so we think. Until the day is over then we wish half our lives we could get back to that time. It was the sixth of June 1996, graduation day. I never felt so happy to have a piece of paper in my hand. That paper was worth four years of my life. It symbolized my stressful days at school. It meant four years of baseball, football, and wrestling. The years of my life that were hard to endure, but so easy to look back on. These were the days that tested my knowledge and spirit. These are the people and places that will live in my memory forever. There was a place called "Tanner Park". This was the place everyone went to get away from it all. People showed off their cars and threw around the old football. The girls there wouldn't give me the time of day, but yet I still managed to have fun. I remember the all night parties that seemed to never end. Although these four years of my life were during my childhood, they helped make it a wonderful life. My life is not over. The life I live is far from over. I don't regret any of the things that I've said or done because they are what make up my life. The dreams my parents have for me live on in my heart everyday along with my own. It doesn't matter if those dreams become reality, for I know I've put my best effort forward and that my dreams will live on in my children. That's what will make my life truly wonderful.