2023 Volume 61 Issue 1 Pages 24-35
This study clarifies the actual situation and characteristics of Mergers and Acquisitions (M&A) undertaken by agricultural corporations as a management growth strategy. The analysis was based on a questionnaire survey of agricultural corporations. Based on the results, a comparative analysis was conducted with small and medium-sized enterprises (SMEs). In addition, a comparative analysis was conducted by type of farming operation.
The main outcomes are as follows: First, agricultural corporations conducted M&A to the same extent as SMEs firms. This indicates a strong need to cover M&A in agricultural management research.
Second, when conducting M&A, agricultural corporations place a high priority on gaining an understanding of stakeholders. This is because while SMEs are more likely to consider selling their management resources for economic rationality, agricultural corporations are concerned that selling their farmland to a third party will diminish their reputation among local stakeholders.
Third, different types of farming operations place varying emphasis on different factors when conducting M&A. Specifically, the institutional vegetable farming corporations placed more importance on the debt status of the sellers, the fruit tree farming corporations on the synergy effect, and the livestock farming corporations on scale expansion and the relationship with the local community.
This study clarified the status and characteristics of M&A activities of agricultural corporations through a comparison of SMEs and farming types. This will enable farm managers and support organizations to consider M&A activities based on the characteristics of each type of farming types; as a result, it is expected to promote the business growth of agricultural management entities.
