Mergers and Acquisitions by Venture Capital-Backed Companies
Publication Type
Book Chapter
Editor
Supervisor
Publication Year
2025
Journal
Book
The Palgrave Encyclopedia of Private Equity
Publication Volume
Publication Issue
Publication Begin page
731
Publication End page
737
Publication Number of pages
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