"Boutique" financial advisors vs. full-service investment banks: An analysis of advisor choice and deal outcomes in mergers and acquisitions

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Kurkela, Mikko
dc.date.accessioned 2014-09-09T05:47:44Z
dc.date.available 2014-09-09T05:47:44Z
dc.date.issued 2014
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/13961
dc.description.abstract OBJECTIVES OF THE STUDY: In this thesis, I study the motives and impact of hiring boutique advisors in mergers and acquisitions (M&A). Specifically, this paper investigates a merging firm's choice between boutique and full-service advisors and the impact of advisor choice on deal outcomes regarding deal premium, deal duration and deal completion. DATA AND METHODOLOGY: My sample consists of 906 M&A transactions. The sample is collected from the Securities Data Corporations (SDC) database in Thomson One Banker. The sample contains completed and withdrawn transactions from the international merger database from 1987 to 2013. Both the acquirer and target firm are required to be publicly traded firms from the EU-19 countries, Norway, and Switzerland. Advisor choice is analyzed with multivariate logistic regressions. Deal premiums are analyzed with OLS regressions and a two-step procedure. Deal duration is analyzed with OLS regressions and deal completion is analyzed with multivariate probit regressions. FINDINGS OF THE STUDY: The findings suggest that deal size is an important factor in determining how merging firms select financial advisors. Boutique advisors are less likely to be chosen by either acquirers or targets as deal size increases. Additionally, some findings suggest that boutique advisors are hired when merging firms face complex transactions but these findings are weak. With regard to whether boutiques can improve deal outcomes, the findings are mixed. en
dc.format.extent 61
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title "Boutique" financial advisors vs. full-service investment banks: An analysis of advisor choice and deal outcomes in mergers and acquisitions en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Rahoituksen laitos fi
dc.contributor.department Department of Finance en
dc.subject.keyword mergers and acquisitions
dc.subject.keyword advisor choice
dc.subject.keyword boutique advisor
dc.subject.keyword full-service advisor
dc.subject.keyword deal premium
dc.subject.keyword deal duration
dc.subject.keyword deal completion
dc.identifier.urn URN:NBN:fi:aalto-201409092604
dc.type.dcmitype text en
dc.programme.major Finance en
dc.programme.major Rahoitus fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon rahoitus
dc.subject.helecon financing
dc.subject.helecon yrityskaupat
dc.subject.helecon corporate acquisitions
dc.subject.helecon neuvonta
dc.subject.helecon counselling
dc.subject.helecon investoinnit
dc.subject.helecon investment
dc.ethesisid 13715
dc.date.dateaccepted 2014-07-02
dc.location P1 I fi

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