• Skip to primary navigation
  • Skip to main content

EACVA

European Association of Certified Valuators and Analysts

  • Home
  • Association
    • EACVA’s Mission
    • Benefits of Membership
    • Classifications of Membership
    • Become a Member
    • About Us – People
    • GACVA Professional Standards
    • NACVA | GACVA Standard Comparison Charts
  • Certified Valuation Analyst (CVA)
    • CVA Training and Exam – for European Business Valuators in Europe
    • CVA Training and Exam Registration
    • Free Info Webcast: Certified Valuation Analyst (CVA) for European Business Valuators in Europe
    • The Core Body of Knowledge for Business Valuations
    • ANSI & NCCA Accredited
    • CVA Candidate Status
  • Business Valuation Events
    • EACVA’s 17th Annual International Business Valuation Conference 2024
    • Business Valuation Seminars
      • EACVA’s Live Web-Seminar: Start-Up Valuation
      • Live Web-Seminar: Valuation Meets ESG & Sustainability
      • EACVA’s Live Web-Seminar: Valuation of Highly Asset-Light Start-Up Companies
    • Webcast – Around the Valuation World international
    • Introduction to Business Valuation – Free Webcasts
  • European Business Valuation Magazine (EBVM)
    • Become an Author
  • Blog
  • Contact Us
  • Show Search
Hide Search

Cross-border buyout pricing

Wolfgang Kniest · June 30, 2021

Bild von congerdesign auf Pixabay 

Open Access: Journal of Business Economics, 23 December 2020

Authors: Benjamin Hammer, Nils Janssen & Bernhard Schwetzler

Please follow this link: Cross-border buyout pricing

Abstract: Using a dataset of 1149 global private equity transactions, we find that cross-border buyouts are associated with significantly higher valuation multiples than domestic ones. We attribute this finding to informational disadvantages of foreign acquirers. Consistent with this idea, we find that the spread in valuation multiples narrows when the target operates in a country with high accounting standards, when it was publicly listed prior to the buyout, and when information production is facilitated due to large firm size. Further results suggest that local partnering in a syndicate serves as an effective remedy to avoid adverse pricing effects. The spread in valuation multiples is also less pronounced for large buyout funds, presumably because they draw on sufficient organizational resources to cope with cross-border-related transaction costs.

Organization

Join EACVA today: Learn More & Become a Member

EACVA is a Valuation Professional Organisation (VPO) member of IVSC

Copyright © 2025 EACVA. All rights reserved.

  • Contact Us
  • Privacy Policy
  • Imprint