The preferences of private equity investors in selecting target acquisitions : an international investigation
Osborne, Sarah, Katselas, Dean, & Chapple, Larelle J. (2012) The preferences of private equity investors in selecting target acquisitions : an international investigation. Australian Journal of Management.
This study investigates the characteristics and attributes that private equity investors prefer when selecting target acquisitions. These characteristics are examined against a matched sample of firms subject to corporate acquisitions via tender/merger offer during 2000-2009, across seven countries: Australia, Canada, the United Kingdom, the USA, France, Germany and Sweden. We show that firm-specific characteristics are more influential in target selection than external or institutional variables. In particular, private equity targets exhibit lower stock volatility and long-term growth prospects, are larger, and have greater abnormal operating income relative to tender/merger offer target firms. Further, private equity bidders exhibit 'home bias', implying that familiarity motivates target selection. Institutional factors remain largely insignificant across all tests.
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|Item Type:||Journal Article|
|Additional Information:||Published online before print June 1, 2012,|
|Keywords:||Acquisition techniques, economic cycles, equity home bias, legal origin, mergers, private equity, regulatory environment, tender offers|
|Subjects:||Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000)|
|Divisions:||Current > Research Centres > Australian Centre for Philanthropy and Nonprofit Studies
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
|Copyright Owner:||Copyright 2012 SAGE Publications|
|Deposited On:||11 Dec 2012 22:04|
|Last Modified:||05 Oct 2013 22:42|
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