A large body of literature demonstrates that acquisitions are on average value-destroying for the acquirer. We … acquisitions lead to increases in information uncertainty, as proxied by analysts' earnings forecast dispersion. We also find that … uncertainty resulting from acquisitions contribute to acquirer post-acquisition wealth losses …

hypothesis propose that the acquisitions of private targets are more value creating than the acquisitions of public targets … reveal that the market perceives the acquisitions of private targets as value creating decisions while having a neutral view … on the acquisitions of public targets. These findings corroborate existing evidence in the area while providing support …