Challenges of the Acquisition Strategy and Performance of Large Family Owned Firms in Nairobi City County

Abstract

The main objective of the study was to explore the challenges of the acquisition strategy and performance of large family owned firms in Nairobi City County. This study used a descriptive survey research design. This study target population was large family owned enterprises in Nairobi City County. The study selectThe study selectThe study selectThe study selectThe study selectThe study selectThe study selectThe study selectThe study selectThe study selected 57 large family owned enterprises in in Nairobi City County. The sampling frame was the 57 large family owned enterprises in Nairobi City County. The study did a census of all the 57 large family owned enterprises. Primary data was used for the study. Structured questionnaires were used to collect primary data. The questionnaires were administered to owners of the large family owned businesses. Quantitative data gathered was analyzed using SPSS version 20. Data analysis encompassed both descriptive and inferential statistics. The descriptive analysis included frequencies and percentages while the inferential statistics included correlations and regression analysis. The study concluded that there exist challenges of the acquisition strategy and performance of large family owned firms in Nairobi City County. These challenges included due diligence problems, integration challenges, cultural system challenges, and management challenges. The study also concluded that the effect of these challenges on the performance of large family owned firms in Nairobi City County was negative. The study also concluded that management challenges had the greatest effect, followed by cultural system challenges, then integration challenges and due diligence problems came in last having the least effect. This points out that for the acquisition strategy to be effective, these large firms should endeavor to minimize these challenges in this order.