Based on our analysis of normalized returns and the variables examined, we found:
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Cash-only deals had higher returns than stock-and-cash deals, and stock-only deals |
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Acquirers with lower P/E ratios completed more successful deals |
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The number of prior deals pursued by an acquirer was relevant; those who closed three to five deals were the most successful |
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Transactions that were motivated by increasing "financial strength" were most successful |
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Deals that were motivated by a desire to purchase IP or technology and those motivated by a desire to increase revenues were least successful |
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The size of the acquirer (based on market capitalization) was not statistically significant |