The Characteristics of Takeover Target Firms: The Case of the English Brewing Industry, 1945–1960

The Characteristics of Takeover Target Firms: The Case of the English Brewing Industry, 1945–1960 The paper examines if takeovers target the “correct” firms. Using the English brewing industry (1945–1960) as a case study, size and conventional performance criteria of taken-over, independent and merging firms are assessed, and shown not to be valid target indicators. Comparison of a real estate/property utilization parameter – average asset value per “tied house” – for each firm category, shows that taken-over firms have the lowest average asset value per tied house. Low average asset value per house characterizes firms which, by failing to optimize their property assets, are poor performers. Takeover therefore, in this case, targets the “correct” firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

The Characteristics of Takeover Target Firms: The Case of the English Brewing Industry, 1945–1960

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1997 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007786229965
Publisher site
See Article on Publisher Site

Abstract

The paper examines if takeovers target the “correct” firms. Using the English brewing industry (1945–1960) as a case study, size and conventional performance criteria of taken-over, independent and merging firms are assessed, and shown not to be valid target indicators. Comparison of a real estate/property utilization parameter – average asset value per “tied house” – for each firm category, shows that taken-over firms have the lowest average asset value per tied house. Low average asset value per house characterizes firms which, by failing to optimize their property assets, are poor performers. Takeover therefore, in this case, targets the “correct” firms.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Sep 29, 2004

References

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