Determinants of Acquirer Returns in Sweden: Evidence from Private-Target M&A

Sammanfattning

We examine how deal payment method and deal size influence the acquisition announcement returns for Swedish listed firms between 2010 and 2022. Focusing on acquisitions of private firms conducted by frequent acquirers, we find that bidders on average earn significantly positive returns. Deal size emerges as the only variable that consistently explains variation in returns, with acquisitions of larger firms generating higher bidder gains. Stock financing is rare in Sweden, and payment methods do not exhibit explanatory power. In addition, returns remain consistent across sequential acquisitions, indicating that repeated deal activity does not erode value creation. These findings highlight the size of the target firm, the firm being acquired, as the main determinant behind announcement period acquisition returns in Sweden.