Changing Premerger Attributes: Acquirees Vs. Acquirers

Abstract

This study presents evidence on the nature of the new merger wave.  Specifically, this study examined a comprehensive profile of 335 pairs of merged industrial companies of the 80’s.  In general, big companies which were heavily leveraged and less liquid acquired small companies which were financially sound but not well managed or situated to survive in the intensely competitive market of the 80’s.