Resource title

Firm Acquisitions and Technology Strategy: Corporate versus Private Equity Investors

Resource image

image for OpenScout resource :: Firm Acquisitions and Technology Strategy: Corporate versus Private Equity Investors

Resource description

Over the last few years, worldwide mergers and acquisitions (M&A) have increased sharply both in terms of value and volume. This development has not only been driven by corporate acquirers but also to an increasing extent by private equity investors. In this paper, we analyze differences in acquisition motives for corporate and private equity investors. We pay particular attention to the importance of technological assets in M&A transactions and distinguish between the technological value of patents and their potential to block competitors in technology markets. Our empirical results for European firm acquisitions in the period from 1999 to 2003 show that both corporate and private equity investors pay a higher price for target firms with valuable patents. However, patents with a potential to block technology competitors seem to be only of interest to corporate investors, especially if these are closely related to the patent portfolio of the acquirer.

Resource author

Katrin Hussinger, Christoph Grimpe

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24649

Resource license

Adapt according to the presented license agreement and reference the original author.