Abstract
AbstractWe study whether the meteoric rise of boutique advisors in mergers and acquisitions (M&As) is justified by their buy‐side performance. We find that acquiring firms represented by boutique advisors generate superior short‐ and long‐run abnormal returns over those employing full‐service advisors. This effect is mainly prominent in private deals, interindustry mergers, and deals involving inexperienced acquirers, where valuation uncertainty tends to be higher. Overall, our results reflect that acquirer shareholders benefit from boutique investment banks' high level of industry expertise and independent advice, supporting the rising demand for their financial advisory services.
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