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What predators look for in public and private firms

Acquirers of private firms appear to see higher levels of profitability and size as important; those eyeing public companies target smaller and underperforming ones: study

Published Mon, Sep 26, 2016 · 09:50 PM

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Singapore

SMALL and underperforming public companies are more likely to become acquisition targets, while the reverse is true for private companies, a study has found.

In the study, which was published on Friday, researchers from technology and deal-related service provider Intralinks and Cass Business School found that private companies are more likely to become acquisition targets if they are large, fast-growing, with high profitability, high leverage and low liquidity.

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