Abstract

Abstract
Focusing on private equity firms, I find that targets receive a higher premium when acquirers are private firms. When the target management is in the private acquirer’s team, the targets receive a lower premium. When I look at cumulative abnormal returns (CARs), targets of private acquirers have lower CARs than those of public acquirers, and private acquisitions with management participation have higher CARs than without management participation. Also, private acquisitions are more likely to be successful than public acquisitions, and within private acquisitions, those with target’s management participation have even better odds.