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M&A transactions prices: a comparison between private equity funds and strategic acquirers

Matteo Raveglia, Maria Cristina Zaccone
April 2021 - n. 4
Keywords: M&A, private equity, stand alone, add-on, acquirenti strategici
Jel codes: G30, G34

Mergers and acquisitions (M&As) are at the heart of private equity funds activities. Private equity managers engage in different kind of M&As, some of which have different logics from each other. Our paper aims at examining differences in acquisition prices, comparing those applied by private equity funds with those of strategic acquirers. Drawing on a dataset of M&A transactions completed in Western Europe from 2000 till 2020, we reveal that addon transactions by Pe funds are realized at a comparable price to those paid by strategic acquirers. Moreover, we extend previous literature demonstrating that Pe funds do not benefit of a price discount when access to debt is cheap and easy and when there is a high level of competition between Pe funds.

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