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Research Paper | Management | Kenya | Volume 5 Issue 5, May 2016

Effect of Market Expansion Acquisition Motive on Financial Performance of Manufacturing Companies in Kenya: A Case Study of Brookside Dairies Limited

Isack Odiwuor Abiero ^[4] | Dr. Agnes Njeru ^[10]

Abstract: Many companies are acquiring other companies with a motive to expand its market. This study sought to determine whether the market expansion motives have effects on financial performance of the companies. The study was conducted at the Brookside Dairies Ltd headquarters at Ruiru, which was purposively sampled due to its recent past business history of acquiring other dairy firms. The study focused also the companys acquired targets including Ilara Dairy Ltd, Delamare Ltd, Buzeki Dairy Ltd and Spin Knit Dairy Ltd. Three years pre and post-acquisition financial statements of the company was also examined and its key financial ratios computed to determine pre and post-acquisition financial performance. A descriptive research design was adopted. The study used a sample size of 40 respondents who were all the management employees working in the case company and acquired targets. The choice and identification of key informants was sampled purposively as they hold key information of the companys business information and strategies. Questionnaire was the main instrument for data collection. However, financial documents from the company also provided secondary data. Analysis and interpretation of the data was done using both qualitative and quantitative methods according to research objectives and research questions. The data collected was summarized, classified, tabulated and analyzed qualitatively. Data was then presented using tables, charts and percentages. The study findings revealed that market expansion motive have effect on the financial performance of manufacturing company.

Keywords: market expansion motive, acquisition, financial performance, manufacturing company, Brookside Dairies Limited

Edition: Volume 5 Issue 5, May 2016,

Pages: 2298 - 2302