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Full-Text Articles in Business
Public Target Selection And Family Firms, Ezgi H. Ottolenghi
Public Target Selection And Family Firms, Ezgi H. Ottolenghi
The Journal of Entrepreneurial Finance
We examine the relation between ownership structure and M&A target selection when family firms pursue public firm acquisitions. We find that family firm acquirers select targets that have lower Tobin’s Q relative to non-family acquirers. Our results suggest that family firms choose to acquire less glamorous targets against which they can better negotiate. The market reacts more positively to these family firm acquisitions at announcement and out to one year. It is family firm target selection skill along with negotiation skill that leads to the favorable market reception.
Effects Of Corporate Cultural Distance On Private Company M&A Outcomes, Court Carruthers
Effects Of Corporate Cultural Distance On Private Company M&A Outcomes, Court Carruthers
Theses and Dissertations
Despite nearly $5 trillion of annual global merger and acquisition (M&A) activity, the degree of shareholder value created by M&A remains a topic of debate. The historical view is that M&A does not increase value for acquiring firms, however recent public company financial research suggests that returns are highly variable, rather than uniformly negative. Cultural differences between acquiring and acquired companies, or corporate cultural distance (CCD), are noted as a potential cause of this variability, however, public company findings remain inconclusive. Although private equity (PE) is responsible for approximately 20% of annual M&A transaction value, nearly all prior research is …