Aktiviteter pr. år
We characterize when private equity funds have a competitive advantage over strategic buyers in acquiring a target firm. Taking advantage of the skill to mitigate informational frictions, private equity funds cut lossmaking projects, potentially merge the target with similarly restructured firms, and exercise growth options. Instead, a strategic buyer integrates with the target to obtain a better competitive position. The private equity fi rm is more likely to win the takeover competition when information is costlier, its required return premium is smaller, and the strategic buyer’s synergy gains are smaller. Such takeovers by private equity funds improve economic welfare.
|Status||Udgivet - jan. 2019|
|Begivenhed||11th Annual Hedge Fund and Private Equity Research Conference - Paris, Frankrig|
Varighed: 17. jan. 2019 → 18. jan. 2019
|Konference||11th Annual Hedge Fund and Private Equity Research Conference|
|Periode||17/01/2019 → 18/01/2019|