Going Public to Acquire? The Acquisition Motive in IPOs

  title={Going Public to Acquire? The Acquisition Motive in IPOs},
  author={U. Çelikyurt and Merih Sevilir and Anil Shivdasani},
  journal={Indiana University Kelley School of Business Research Paper Series},
Newly public firms make acquisitions at a torrid pace. Their large acquisition appetites reflect the concentration of initial public offerings (IPOs) in mergers and acquisitions-(M&A-) intensive industries, but acquisitions by IPO firms also outpace those by mature firms in the same industry. IPO firms' acquisition activity is fueled by the initial capital infusion at the IPO and through the creation of an acquisition currency used to raise capital for both cash- and stock-financed acquisitions… 

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