Title

Firm Valuation Effects Of High-Tech M&Amp;A: A Comparison Of New Ventures And Established Firms

Keywords

Entrepreneurship; Mergers and acquisitions; New ventures; Performance

Abstract

I examine whether the unique attributes of new ventures cause these firms to experience different M&A outcomes vis-à-vis established firms. I also wish to test how the differences between these two classes of buyers play out in acquisitions of privately-held and newly-incorporated targets. Drawing from a sample of high-technology acquisitions, the results show that new ventures experience lower average performance in general, as well as when the target is itself a new venture. Yet, they outperform established firms when the target is a privately-held entity. The findings demonstrate that the challenges and opportunities of firms shift through the first few years of their existence, directly affecting the outcomes of their M&A activity. © 2006 Elsevier Inc. All rights reserved.

Publication Date

7-6-2006

Publication Title

Journal of High Technology Management Research

Volume

17

Issue

1

Number of Pages

85-96

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/j.hitech.2006.05.006

Socpus ID

33745652029 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/33745652029

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