The appeal of private targets in international acquisitions

Jeff Madura and Jurica Susnjara

Journal of International Financial Markets, Institutions and Money, 2013, vol. 24, issue C, 198-222

Abstract: Using a sample of 8000 targets in the US and Western Europe over the 1997–2009 period, we find that private targets receive significantly higher payments from bidders than public targets. We find that the private valuation premium is inversely related to the size of the target. We also find that the private valuation is relatively high when the target has better access to debt in its home country. Also, the private valuation premium is relatively high when the bidder country stock market is more fully developed and relatively low when the bidder has ample access to debt.

Keywords: International; Mergers; Acquisitions; Private; Size; Development (search for similar items in EconPapers)
JEL-codes: G15 G32 G34 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:24:y:2013:i:c:p:198-222

DOI: 10.1016/j.intfin.2012.12.005

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