The Value Creation of Intellectual Property in Mergers and Acquisitions
(2016) NEKP03 20161Department of Economics
- Abstract
- This thesis examines the shareholder value creation of IP in M&A. Using a unique patent-M&A data set over the period 2006 to 2016, we show that acquirers of companies holding IP gain significantly more shareholder value than acquirers of targets not holding IP. We find that this only holds as a binary relationship, and that the discrete relationship between shareholder value and IP is negative. We also find that potential IP synergies do not increase shareholder value. We conclude that, while IP is a vital part of targets' assets in M&A activities, ambitious valuations and large IP premia may shift future IP-induced value from acquirers to targets.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8878762
- author
- Wallertoft, Mark LU and Stenholm, Philip LU
- supervisor
- organization
- course
- NEKP03 20161
- year
- 2016
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- intellectual property, mergers and acquisitions, patents, value creation
- language
- English
- id
- 8878762
- date added to LUP
- 2016-06-13 13:13:33
- date last changed
- 2016-06-13 13:13:33
@misc{8878762, abstract = {{This thesis examines the shareholder value creation of IP in M&A. Using a unique patent-M&A data set over the period 2006 to 2016, we show that acquirers of companies holding IP gain significantly more shareholder value than acquirers of targets not holding IP. We find that this only holds as a binary relationship, and that the discrete relationship between shareholder value and IP is negative. We also find that potential IP synergies do not increase shareholder value. We conclude that, while IP is a vital part of targets' assets in M&A activities, ambitious valuations and large IP premia may shift future IP-induced value from acquirers to targets.}}, author = {{Wallertoft, Mark and Stenholm, Philip}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Value Creation of Intellectual Property in Mergers and Acquisitions}}, year = {{2016}}, }