The Acquisition Process in Multinational Food Companies in Europe

Abstract

The objective of this research is to develop an understanding of the management processes prior to an acquisition decision by multinational food companies in Europe. To achieve this the literature on the acquisition process is reviewed and found to be limited. Thus Miles and Snows(1978) strategic typologies is used as a device to aid data analysis by dividing the sample. This along with other similar typologies are also reviewed. The sample frame is based on the worlds thirty largest food companies according to ’The cost of None Europe’. To place the industry and the results of the Miles and Snow typology in context the companies and industry are also reviewed. Data was collected using interviews with senior members of multinational food companies strategy staff and a questionnaire adapted from Connant, Mokwa and Varadarjon (1990) .This data was analyzed and compared to the results of the interviews and public sources of data concerning acquisitions. The later chapters review the processes involved in acquisitions in terms of what are common to the industry, Particular groups, utilizing Miles and Snow as a tool or unique to a company. The major processes involved are strategy formulation, information collection, acquisition proposals and negotiations. The conclusions high light the high degree of similarity of acquisition process between the companies and the importance of information collection and validation to the process and in the process certain limitations in the Miles and Snow methodology.