The choice of financial advisory and independent expert services in takeovers: evidence in a setting where the services are independent

Anna Bedford, Martin Bugeja and Matthew Grosse

Accounting and Finance, 2021, vol. 61, issue 2, 3649-3683

Abstract: This study investigates the choice to obtain both financial advisory services and independent expert opinions during takeovers in Australia where these services are provided by independent firms. We find the use of both services increases when the target firm is offered a lower initial premium. We also document that engaging both services benefits target firm shareholders through a higher probability of a price revision and a greater likelihood of deal success. The results are robust to controlling for selection bias and suggest the use of both independent experts and financial advisors only adds value when different firms provide these services.

Date: 2021
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https://doi.org/10.1111/acfi.12715

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