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Overcoming Buyer-Seller Tensions in the Pre-Acquisition Process

Author

Listed:
  • Raj K. Shankar
  • Einar Rasmussen
  • Marius T. Mathisen
  • Øystein Widding

Abstract

Larger firms are increasingly acquiring innovative new ventures at an early stage. Despite significant integration challenges with these acquisitions, the elongated pre-acquisition process of aligning buyers’ and sellers’ different objectives is rarely studied. By studying nine academic spin-off acquisitions, we develop a three-phase model outlining the temporal dynamics of the pre-acquisition process. In each phase—namely, strategic fit, synergy confidence, and deal structure—a specific buyer-seller tension emerges. By showing how each of these tensions needs to be overcome prior to an acquisition event, our dialectical model complements the dominant focus on post-integration activities in the acquisition literature.

Suggested Citation

  • Raj K. Shankar & Einar Rasmussen & Marius T. Mathisen & Øystein Widding, 2023. "Overcoming Buyer-Seller Tensions in the Pre-Acquisition Process," Entrepreneurship Theory and Practice, , vol. 47(5), pages 1731-1759, September.
  • Handle: RePEc:sae:entthe:v:47:y:2023:i:5:p:1731-1759
    DOI: 10.1177/10422587221102110
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