Effects of Acquisition on Profitability of Selected Manufacturing Firms in South-East, Nigeria

Abstract

Firms acquire each other with the objectives of improving various operational outcomes. The study investigated the relationship between acquisition and profitability of selected beverage firms in South-East, Nigeria. The purposive sampling method was adopted to draw a sample size of 398 from a population of 531. The findings indicates that acquisition has a significant positive correlation with profitability of selected manufacturing firms South-East, Nigeria. It was recommended that organizations should always embrace acquisition so as to enhance their profitability. The researchers concluded that acquisition improved the profitability of business organizations and boosted both earnings per share and price-earnings ratio while enhancing return on equity and profit after tax.

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