Acquisition experience, Performance and M&A advisors
Keywords
Loading...
Authors
Issue Date
2024-07-01
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
M&A markets have been rising strongly in the last decades. However, 70 to 90 percent of acquisitions fail. Prior research is focused on the determinants of acquisition performance. One of the topics that is highly discussed in literature is the effect of acquisition experience of the acquiring firm on acquisition performance. However, no general consensus on the relationship between acquisition experience and performance exists. Therefore, this study aims to create a deeper understanding on the topic. The dataset includes 274 acquisitions over the world between 2009 and 2019. The key findings of this study provide significant evidence for a negative effect of acquisition experience on performance. An effect that is even strengthened for target-industry experience and experience measured on more recent time intervals. One of the reasons for the negative effect can be related to the wrong application of experience to new situations. A second analysis of this study investigates whether advisor reputation has an effect on the relationship between acquisition experience and performance. However, no significant results on this relationship were found.
Keywords: Acquisition experience, Cumulative Abnormal Returns, M&A advisors, Advisor Reputation, Event Study
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen