Title: Determinants of acquisition value: the role of target and acquirer characteristics

Authors: Marcus Wagner

Addresses: Julius-Maximilians-University of Wuerzburg, Stephanstr. 1, 97070 Wuerzburg, Germany

Abstract: Innovation activities in high technology industries frequently imply make-or-buy decisions because of the heterogeneity of firms' ability to pursue specific types of innovation. This paper investigates the factors determining the value of acquisitions in three distinct high technology industries, namely semiconductors, biotechnology and electronic design automation. It analyses how target and acquirer characteristics relate to acquisition value. The paper finds an association of acquisition value with innovation activities and results of the acquirer and with knowledge residing in the target. This suggests that both, acquirer and target characteristics determine the value of acquisitions but with differing effects across industries.

Keywords: acquisition value; high technology; high-tech industry; acquisition targets; acquirers; patents; innovation activities; make-or-buy decisions; acquisitions; semiconductors; biotechnology; electronic design automation.

DOI: 10.1504/IJTM.2013.053031

International Journal of Technology Management, 2013 Vol.62 No.1, pp.56 - 74

Received: 22 Jun 2011
Accepted: 23 Mar 2012
Published online: 30 May 2013 *

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