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Financial Characteristics of Acquired Firms in the Canadian Food Industry

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  • Beaulieu, Martin S.

Abstract

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.

Suggested Citation

  • Beaulieu, Martin S., 2002. "Financial Characteristics of Acquired Firms in the Canadian Food Industry," Agriculture and Rural Working Paper Series 28024, Statistics Canada.
    • Handle: RePEc:ags:scarwp:28024
    DOI: 10.22004/ag.econ.28024
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    References listed on IDEAS

    as
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    3. Jensen, Michael C, 1988. "Takeovers: Their Causes and Consequences," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 21-48, Winter.
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    Agribusiness;

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