Abstract
There is mixed evidence on the value of top-tier advisors for acquirers. Based on 7,192 U.S merger and acquisitions deals between 1980 and 2015, we reconcile previous contradictory findings by showing that top-tier advisors are associated with higher acquirer returns for public and private targets but only in periods of merger waves. Nevertheless, top-tier advisors demand a premium fee for their services both in and out of merger waves. They work as a certification mechanism when there is investors’ limited attention and greater uncertainty in the market.
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