Ginkgo Bioworks: The Cell as a Factory
Citation:
Gompers, Paul A., Amitabh Chandra, and Matthew Wozny. "Ginkgo Bioworks: The Cell as a Factory." Harvard Business School Case 220-069, April 2020. View Details|
Other Unpublished Work 2009 Bridge Building in Venture Capital-Backed Acquisitions |
Abstract
We study the role of common venture capital investors in alleviating asymmetric information between public acquirers and private venture capital-backed targets. We find that acquisition announcement returns are more positive for acquisitions in which both the target and the acquirer are financed by the same venture capital firm. Similarly, having a common investor increases the likelihood that a transaction will be all equity-financed and the likelihood that an acquisition will take place. Our results suggest that common venture capital investors can form a bridge between acquiring and target firms that reduces asymmetric information associated with the transaction for both parties.
Keywords: Mergers and Acquisitions; Venture Capital; Private Equity; Knowledge Sharing; Market Transactions;
Citation:
Gompers, Paul A., and Yuhai Xuan. "Bridge Building in Venture Capital-Backed Acquisitions." 2009.
