Skip to main content

Research Repository

Advanced Search

Acquisitions: private versus public

Draper, P.; Paudyal, K.

Authors

P. Draper

K. Paudyal



Abstract

Takeovers of privately held companies represent more than 80% of all takeovers. Despite their significance, studies of such takeovers and their impact on the wealth of shareholders are rare. Using a very large, near exhaustive, sample of listed and privately held UK targets we examine the impact of such takeovers on the risk adjusted return of listed UK acquirers over the period 1981 to 2001. Acquirers earn significant positive returns during the period surrounding the bid announcement although the gains are dependent on target status, mode of payment, and the relative size of those involved. The much quoted conclusion, derived from the experiences of listed firm bidders that the shareholders of acquiring firms fail to gain from takeovers, cannot be generalised. Acquiring a privately held company is an attractive option for maximising shareholder wealth.

Citation

Draper, P., & Paudyal, K. (2006). Acquisitions: private versus public. European Financial Management, 12(1), 57-80. https://doi.org/10.1111/j.1354-7798.2006.00310.x

Journal Article Type Article
Publication Date Jan 1, 2006
Deposit Date Jan 16, 2008
Journal European Financial Management
Print ISSN 1354-7798
Electronic ISSN 1468-036X
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 12
Issue 1
Pages 57-80
DOI https://doi.org/10.1111/j.1354-7798.2006.00310.x

You might also like



Downloadable Citations