Acquisitions: Private versus Public

Paul R. Draper · Krishna Paudyal

181 citations0/0 files storedEuropean Financial Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Financial Markets and Investment Strategies Private Equity and Venture Capital

Abstract

Takeovers of privately held companies represent more than 80% of all takeovers. Despite their significance, studies of such takeovers and their impact on the wealth of shareholders are rare. Using a very large, near exhaustive, sample of listed and privately held UK targets we examine the impact of such takeovers on the risk adjusted return of listed UK acquirers over the period 1981 to 2001. Acquirers earn significant positive returns during the period surrounding the bid announcement although the gains are dependent on target status, mode of payment, and the relative size of those involved. The much quoted conclusion, derived from the experiences of listed firm bidders that the shareholders of acquiring firms fail to gain from takeovers, cannot be generalised. Acquiring a privately held company is an attractive option for maximising shareholder wealth.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 181 citations exist upstream.

References

1984Corporate financing and investment decisions when firms have information that investors do not have 1996Multifactor Explanations of Asset Pricing Anomalies 1984Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have 1985Using daily stock returns 1983The market for corporate control 2000Agency Costs and Ownership Structure 2002What Do Returns to Acquiring Firms Tell Us? Evidence from Firms That Make Many Acquisitions 2001Can Investors Profit from the Prophets? Security Analyst Recommendations and Stock Returns

Cited by

2016Cross‐border acquisitions by state‐owned firms: How do legitimacy concerns affect the completion and duration of their acquisitions?2010Do Private Company Targets that Hire Big 4 Auditors Receive Higher Proceeds?*2023Mergers and acquisitions research in finance and accounting: Past, present, and future 2011Determinants of earnout as acquisition payment currency and bidder’s value gains 2015Investor sentiment and bidder announcement abnormal returns

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.