Faculty of Economics and Business Administration Publications Database

Dating before marriage? Analyzing the influence of pre-acquisitionexperience and target familiarity on acquisition success in the “M&A as R&D” type of acquisition

Al-Laham, Andreas
Amburgey, Terry L.
Volume: 26
Number: 1
Pages: 25 - 37
Month: March
ISSN-Print: 0956-5221
Link External Source: Online Version
Year: 2010
Keywords: Mergers and acquisitions; Alliance Experience; Knowledge; Biotechnology; Patents
Abstract: This study analyzes the “M&A as R&D” type of acquisition addressing the question whether acquisitionexperience and target familiarityinfluence the post-acquisition integration success in terms of innovation. We measure the influence of general acquisitionexperience of the acquirer, pre-acquisitionallianceexperience with the target, and sector familiarity of the target on the post-acquisition patent rate of the acquirer. The results of our event history analysis of the complete U.S. biotech population for 1973–2000 indicate that general acquisitionexperience and target familiarity increase the post-acquisition patenting speed.