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- W2511762006 abstract "The information gap in the M&A market hinders acquirers from effectively identifying high-quality targets. We examine whether VC/PEs convey information content in the M&A market and whether acquirers can use such information to identify high-quality targets. We show that VC/PEs have significant information content and can signal high-quality target companies via “certification”. When acquirers lack acquisition experience and targets are located in inferior information environments, VC/PE “certification” is more significant. The better reputation a VC/PE has, the more information it conveys. Syndicate VC/PEs convey stronger information than independent VC/PEs. We also find that acquirers do not pay higher premiums for high-quality targets. Overall, our results suggest that VC/PEs have value relevance in the M&A market, confirming their “certification” role. We present means for acquirers to select high-quality targets and investors to build efficient portfolios." @default.
- W2511762006 created "2016-09-16" @default.
- W2511762006 creator A5052022256 @default.
- W2511762006 creator A5090444570 @default.
- W2511762006 date "2018-03-01" @default.
- W2511762006 modified "2023-10-15" @default.
- W2511762006 title "Identifying M&A targets and the information content of VC/PEs" @default.
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- W2511762006 doi "https://doi.org/10.1016/j.cjar.2016.08.002" @default.
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