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Valuation Of Target Firms Acquired In The Food Sector During The 1996-2001 Wave

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  • Declerck, Francis

Abstract

The paper studies valuation ratios of food companies that were part of mergers & acquisitions (M&A) involving at least one French company during the 1996-2001 period. Results converge to value the food company 1.1 to 1.4 times its turnover. There is no significant difference of "valuation to turnover" ratios among M&A involving only French firms and M&A involving companies from different countries. Corporate valuation may differ according to food sub-sector.

Suggested Citation

  • Declerck, Francis, 2003. "Valuation Of Target Firms Acquired In The Food Sector During The 1996-2001 Wave," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(4), pages 1-16.
    • Handle: RePEc:ags:ifaamr:34417
    DOI: 10.22004/ag.econ.34417
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    File URL: https://ageconsearch.umn.edu/record/34417/files/0504de01.pdf
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    References listed on IDEAS

    as
    1. Stevens, Donald L., 1973. "Financial Characteristics of Merged Firms: A Multivariate Analysis," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 8(2), pages 149-158, March.
    2. Darren Hudson & Cary W. Herndon, 2002. "Factors influencing probability and frequency of participation in merger and partnership activity in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 18(2), pages 231-246.
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    Cited by:

    1. Heyder, Matthias & Ebneth, Oliver & Theuvsen, Ludwig, 2008. "Financial Market Reactions To International Mergers & Acquisitions In The Brewing Industry: An Event Study Analysis," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7610, German Association of Agricultural Economists (GEWISOLA).
    2. Heyder, M. & Ebneth, O. & Theuvsen, L., 2008. "Financial Market Reactions to International Mergers & Acquisitions in the Brewing Industry: An Event Study Analysis," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.

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