Mergers and acquisitions by venture capital-backed companies
Meuleman, Miguel Luypaert, Mathieu Muller, Sarah
Meuleman, Miguel
Luypaert, Mathieu
Muller, Sarah
Citations
Altmetric:
Publication Type
Book Chapter
Editor
Supervisor
Publication Year
2024
Journal
Book
The Palgrave Encyclopedia of Private Equity
Publication Volume
Publication Issue
Publication Begin page
1
Publication End page
7
Publication Number of pages
XX, 1730
Collections
Abstract
Mergers and acquisitions (M&A) by venture capital-backed companies have witnessed a surge in popularity in recent years. This article aimed to comprehensively examine this subject from the buyer perspective. Firstly, we demonstrate that venture capitalists assume multiple roles in M&A deals, including traditional screening, monitoring, advising, and coaching. Secondly, drawing from signaling, agency, resource-based, and organizational learning theories, one might anticipate a higher propensity for VC-backed companies to engage in acquisitions. However, the existing literature presents conflicting findings regarding the likelihood of VC-backed takeovers. Likewise, the assessment of short-term and long-term performance outcomes, typically measured through stock returns, yields inconclusive results.
Research Projects
Organizational Units
Journal Issue
Keywords
Add-On, Buy and Build, Inorganic Growth, Reverse Takeover, VC-Backed Acquirer