Completing the Technology Transfer Process: M&As of Science-Based IPOs

29 Pages Posted: 15 Feb 2012  

Michele Meoli

University of Bergamo

Stefano Paleari

University of Bergamo - SIGE Sezione di Ingegneria Gestionale

Silvio Vismara

University of Bergamo

Date Written: January 14, 2012

Abstract

This paper investigates the valuation and M&A dynamics of the population of 254 biotech firms that went public in Europe over the last two decades. Among these, we identify a high proportion (40%) of firms affiliated with a university or another public research organization. After controlling for intellectual capital and other possible determinants, we find that affiliation with a university is recognized as beneficial by investors. This affiliation enhances the valuation of the firms and the probability of being targeted in subsequent M&As, particularly in cross-border deals. We conclude that post-IPO acquisitions by incumbent firms are mechanisms to finalize the technology transfer process started in a research institute. Our findings allow us to derive implications for venture investors, academic entrepreneurs, university managers, and policymakers.

Suggested Citation

Meoli, Michele and Paleari, Stefano and Vismara, Silvio, Completing the Technology Transfer Process: M&As of Science-Based IPOs (January 14, 2012). Available at SSRN: https://ssrn.com/abstract=2005281 or http://dx.doi.org/10.2139/ssrn.2005281

Michele Meoli

University of Bergamo ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
+390352052026 (Phone)
+390352052077 (Fax)

Stefano Paleari

University of Bergamo - SIGE Sezione di Ingegneria Gestionale ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
+39 03 520 52340 (Phone)
+39 03 556 2779 (Fax)

Silvio Vismara (Contact Author)

University of Bergamo ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
00390352052352 (Phone)
0039035562779 (Fax)

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