Allure and danger of the boutiques: The influence of the specialization of investment bank on the acquirer's performance

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Advances in Mergers & Acquisitions

ISSN: 1479-361X
Series editor(s): Sydney Finkelstein and Cary Cooper

Subject Area: Strategy

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Document Information:
Title:	Allure and danger of the boutiques: The influence of the specialization of investment bank on the acquirer's performance
Author(s):	Alexander Sleptsov
Volume:	9 Editor(s): Cary L. Cooper, Sydney Finkelstein ISBN: 978-0-85724-465-9 eISBN: 978-0-85724-466-6
Citation:	Alexander Sleptsov (2010), Allure and danger of the boutiques: The influence of the specialization of investment bank on the acquirer's performance, in Cary L. Cooper, Sydney Finkelstein (ed.) Advances in Mergers and Acquisitions (Advances in Mergers & Acquisitions, Volume 9), Emerald Group Publishing Limited, pp.199-212
DOI:	10.1108/S1479-361X(2010)0000009012 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Chapter Item
Abstract:	This chapter looks at the role the investment banks play in the acquisition process. The existing literature presents a conflicting account of the banks' advice on the performance of the acquiring firm. By distinguishing between two different types of investment banks – bulge bracket and boutique firms – the chapter shows that the acquirer's performance may be a function of the interaction between the acquirer's choice of the bank's type and the acquirer's experience. More specifically, it appears that while the inexperienced acquirers can benefit from the deeper acquisition expertise of the boutique banks, the experienced acquirers can benefit more from the broader information search capabilities of the bulge bracket banks.