Financial Characteristics of Acquired Firms in the Canadian Food Industry
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Mergers and acquisitions represent an important reallocation of resources. In 1998, the value of these transactions jumped to almost $160 billion in Canada. The motives for firms to merge or acquire other firms change for different periods and industries. This study provides a financial profile of Canadian corporations in the food industry that were acquired during the 1996-98 period. Overall, acquired firms did not represent a significant share of the total sales of incorporated Canadian food firms. Firms with balanced (or matched) growth-resources, less liquidity and leverage were more likely to be acquired in 1997 and 1998. Large firms with matched growth resources were also more likely to be taken over.