The Dynamics of Serial Acquirers in Sweden: Long-term Performance and the Public/Private Multiple Discrepancy

Abstract

This thesis delves into the public/private valuation discrepancy and the mergers and acqusitions strategies of Swedish serial acquirers. Our results reveals that companies listed on the OMXS traded at 2.9 times the EV/sales, 2.6 times the EV/EBITA, and 2.4 times the EV/EBIT multiple of privately held firms. Moreover, our study uncovers a consistent trend of positive monthly abnormal returns over the long term with results ranging from 0.33% to 1.08%. These findings remain robust across time intervals ranging from 3 to 36 months post-acquisition announcement. Our results retain statistical significance even after adjusting for autocorrelation. We conclude that serial acquirers acquire private firms at discounted rates and that their strategy results in consistent long-term abnormal returns.