Tracking M&A Advisors’ Track Record Along Acquisition Sequences – The Positive Influence of their Industry Expertise and Advisory Relationships on Serial Bidders’ Acquisition Performance
University of Mannheim - Department of Finance and Accounting & Taxation
September 24, 2013
This study extends the literature of acquisition sequences by examining bank advisors’ influence on the performance in mergers and acquisitions by modeling banks’ expertise on the industry level and their advisory relationships with serial bidders. The advising investment banks’ industry expertise and its access to the serial acquirer’s private information have a positive influence on the acquisition performance. Experienced banks help serial bidders to complete value creating acquisitions faster and to withdraw quickly from value destroying deals. The analysis shows that the matching of the most experienced banks with the most frequent serial acquirers is efficient in terms of higher returns, a shorter time to resolve the bid, a higher completion probability and a higher probability to make a good acquisition decision.
Number of Pages in PDF File: 83
Keywords: Mergers & Acquisitions, Acquisition Sequence, Advisory Expertise, Acquisition Returns
JEL Classification: G34, G24
Date posted: March 2, 2012 ; Last revised: November 17, 2013
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