IPOs versus Acquisitions and the Valuation Premium Puzzle: A Theory of Exit Choice by Entrepreneurs and Venture Capitalists

By Onur Bayar, Thomas J. Chemmanur. Journal of Financial and Quantitative Analysis, 2011

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Investment, Duration, and Exit Strategies for Corporate and Independent Venture Capital‐Backed Start‐Ups (2015, unknown): “One of the key results is that high-quality start-up companies go public while low-quality companies are acquired, which provides an explanation for the IPO valuation premium puzzle (see Bayar and Chemmanur, 2011, for a theoretical analysis and Bayar and Chemmanur, 2012, for an empirical test).”
How Does Venture Capital Financing Improve Efficiency in Private Firms? A Look Beneath the Surface (2011, unknown): “6 See Bayar and Chemmanur (2010) for a theoretical model that makes the above prediction.”
Making sense of entrepreneurial exit strategies: A typology and test (2015, background): “We argue that individuals who focus on the extrinsic motivation of financial rewards aremore likely to pursue a financial harvest exit strategy (Bayar and Chemmanur, 2011; Brau et al., 2003).”
Where Have All the IPOs Gone (2013, unknown): “Perhaps the closest related work focusing on economies of scope as an explanation of IPO activity is by Bayar and Chemmanur (2011), who model the choice of going public as a trade-off between an entrepreneur retaining the private beneﬁts of control by staying private versus realizing higher wealth…”
The Causes and Consequences of Venture Capital Stage Financing (2011, unknown): “Bayar and Chemmanur (2010) suggest that only the best-quality firms can access the public capital markets through an IPO.”