Margsiri, Worawat; Mello, Antonio S.; Ruckes, Martin E. - In: Review of Finance 12 (2008) 4, pp. 635-671
Firms can grow through internal investment or through acquisition. While internal growth takes time, an acquisition provides cash flows immediately. The opportunity to grow internally affects the price of an acquisition as it is a fall-back option for the acquirer should negotiations break down....
