Interesting read and small business takeaways.
Excerpt…….We find that corporate acquirers who purchase targets that are sought after by financial buyers outperform corporate acquirers who buy targets bid on by corporate firms only or those without competition. These results are robust to alternative measures of acquirer performance and different performance windows. A battery of tests shows that deal characteristics, acquirer abilities, and observable target characteristics cannot explain this difference in returns.
Read full article…via It Pays to Follow the Leader — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
