Financial Characteristics of Acquired Firms in the Canadian Food Industry

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.


Subject(s):
Issue Date:
2002
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/28024
Total Pages:
28
Series Statement:
Agriculture and Rural Working Paper 57




 Record created 2017-04-01, last modified 2017-04-04

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