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The choice of financial advisory and independent expert services in takeovers: evidence in a setting where the services are independent

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  • Anna Bedford
  • Martin Bugeja
  • Matthew Grosse

Abstract

This study investigates the choice to obtain both financial advisory services and independent expert opinions during takeovers in Australia where these services are provided by independent firms. We find the use of both services increases when the target firm is offered a lower initial premium. We also document that engaging both services benefits target firm shareholders through a higher probability of a price revision and a greater likelihood of deal success. The results are robust to controlling for selection bias and suggest the use of both independent experts and financial advisors only adds value when different firms provide these services.

Suggested Citation

  • Anna Bedford & Martin Bugeja & Matthew Grosse, 2021. "The choice of financial advisory and independent expert services in takeovers: evidence in a setting where the services are independent," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3649-3683, June.
    • Handle: RePEc:bla:acctfi:v:61:y:2021:i:2:p:3649-3683
    DOI: 10.1111/acfi.12715
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    References listed on IDEAS

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    1. Daniliuc, Sorin & Guo, Hui & Wee, Marvin, 2023. "The usefulness of financial advisors to government-influenced Chinese acquirers," Global Finance Journal, Elsevier, vol. 55(C).

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