Allure and danger of the boutiques: The influence of the specialization of investment bank on the acquirer's performance

Abstract

This chapter looks at the role the investment banks play in the acquisition process. The existing literature presents a conflicting account of the banks' advice on the performance of the acquiring firm. By distinguishing between two different types of investment banks – bulge bracket and boutique firms – the chapter shows that the acquirer's performance may be a function of the interaction between the acquirer's choice of the bank's type and the acquirer's experience. More specifically, it appears that while the inexperienced acquirers can benefit from the deeper acquisition expertise of the boutique banks, the experienced acquirers can benefit more from the broader information search capabilities of the bulge bracket banks.

Citation

Sleptsov, A. (2010), "Allure and danger of the boutiques: The influence of the specialization of investment bank on the acquirer's performance", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 199-212. https://doi.org/10.1108/S1479-361X(2010)0000009012