Carlin, Bruce Ian; Liu, Tingting; Officer, Micah S.; … - National Bureau of Economic Research - 2026
Allocation mechanisms in M&A deals are complex, but a main feature is that a target board controls who to invite to the sale. In a theoretical model, we show that it is optimal for the target to invite fewer potential acquirers when they are more homogeneous (i.e., when their values for the...