High-tech acquisitions, firm specific characteristics and the role of investment bank advisors

摘要

The valuation effects of US acquirers of high-tech targets are dependent on factors specific to the acquirers or targets. Specifically, acquisitions of public high-tech targets yield negative valuation effects on average, while acquisitions of private high-tech targets yield favorable valuation effects. When acquisitions of public high tech targets are examined separately, we find that deals advised by top-tier banks elicit a more favorable share price response than those advised by either mid or third-tier banks. Acquisitions of private high-tech targets that are certified by an investment bank of any tier experience the most favorable announcement effects. Furthermore, the valuation effects are more favorable when the target has less intangible assets and when the targets receive more media exposure prior to the acquisition announcement.