The post-acquisition performance of acquired entrepreneurial firms
Feys, Charlotte Manigart, Sophie
Feys, Charlotte
Manigart, Sophie
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Publication Type
Journal article
Editor
Supervisor
Publication Year
2011
Journal
Investment Management and Financial Innovations
Book
Publication Volume
8
Publication Issue
1
Publication Begin page
72
Publication End page
79
Publication Number of pages
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Abstract
We analyze the post-acquisition performance of 384 unquoted entrepreneurial firms that have been acquired between 2000 and 2004, and compare it with 875 comparable, but independent entrepreneurial firms. Target firms in domestic acquisitions are less profitably and grow less than independent firms, both before and after the acquisition. Target firms in cross-border acquisitions are comparable to independent firms in growth and profitability, but they have higher margins and higher returns after the acquisition. Hence, especially cross-border acquisitions create operational synergies.
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Keywords
Corporate Finance