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Private Equity Program News

July 8, 2013

Research on No Shop/Go Shop featured in Wall Street Journal

When Shopping Sprees Go Wrong


Professors Charles W. Calomiris and Donna M. Hitscherich along with PhD candidate, Adonis Antoniades have completed research on the economic impact of go-shop provisions in merger agreements with private equity buyers. The authors find that go-shops are not a free option, but rather result in lower initial acquisition premia, ceteris paribus and further find no significant effect on abnormal returns from choosing a “go-shop” option.  The decision to utilize a “go-shop” is  predicted by various target firm attributes and characteristics of the target firm’s legal advisory team and sale procedures. 

The full text of the research can be found at No Free Shop: Why Target Companies in MBOs and Private Equity Transactions Sometimes Choose Not to Buy ‘Go Shop’ Options.  

The research was featured in a July 4, 2013 article in the Wall Street Journal by Ryan Dezember "When Shopping Sprees Go Wrong."

Events

September 16

Alumni Event M&A Roundup: How the 2014 'Resurgence' is Impacting Private Equity"
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October 28

Info Session: Learn about the Private Equity Program and Deal Camp (for Current Students)
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December 5-7

Fourth Annual Deal Camp in Montauk
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New Research

No Free Shop: Why Target Companies in MBOs and Private Equity Transactions Sometimes Choose Not to Buy ‘Go Shop’ Options

By Charles W. Calomiris, Donna M. Hitscherich and Adonis Antoniades

Read the Paper >

Contact Us

Private Equity Program
Columbia Business School
Uris Hall, Room 218
3022 Broadway
New York, NY 10027
(212) 854-7989
pep@gsb.columbia.edu