Corporate strategy research has largely ignored initial public offerings. We discuss possible reasons why this is the case and then present evidence suggesting why this may be problematic. In contrast to prior M&A research, we take the perspective of the sell-side and investigate a private...

This study investigates acquisitions of small manufacturing firms and compares private and public targets. We develop the argument that private targets tend to involve higher transaction costs in the presence of adverse selection problems than their public counterparts. Consistent with...