Ownership Similarity in M&A Target Selection

Forthcoming in Strategic Organization

Bocconi University Management Research Paper No. 14

44 Pages Posted: 5 Feb 2019

See all articles by Emanuele Bettinazzi

Emanuele Bettinazzi

University of Lugano

Danny Miller

HEC Montreal

Mario Daniele Amore

Bocconi University - Department of Management and Technology

Guido Corbetta

Bocconi University - Department of Management and Technology

Date Written: august 26, 2018

Abstract

We study how ownership similarity between two firms affects the likelihood of an acquisition between them. Assortative matching arguments suggest that similarity between acquiring and target firms can encourage acquisition behavior since more similar partners can better understand one another and combine resources in a more efficient way. Previous research has confirmed this expectation focusing on traits related to industry, strategy and technology. We contribute to this literature by examining similarity in the type of dominant owner. We hypothesize and find evidence in a sample of 14,000 Italian companies that acquisitions are more likely to occur among firms with similar owners.

Keywords: Ownership structure, Target Selection, Acquisitions, Family firms, Corporate governance

Suggested Citation

Bettinazzi, Emanuele and Miller, Danny and Amore, Mario Daniele and Corbetta, Guido, Ownership Similarity in M&A Target Selection (august 26, 2018). Forthcoming in Strategic Organization, Bocconi University Management Research Paper No. 14, Available at SSRN: https://ssrn.com/abstract=3329162 or http://dx.doi.org/10.2139/ssrn.3329162

Emanuele Bettinazzi (Contact Author)

University of Lugano ( email )

Via Buffi, 13
Lugano, TN 6900
Switzerland

Danny Miller

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3 H3T 2A7
Canada

Mario Daniele Amore

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Guido Corbetta

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

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