Faculty Scholarship 1994 - Present

Acquisition Performance: Experience or Competence?

In a study of over 10,000 acquisitions between 1991 and 2002, we find evidence that past success raises future performance in private, or semi-private, bids but not in public bids. We also find that past success was not associated with the number of prior acquisitions. We attribute this past success to an unobserved acquisition competence and argue that acquisition competence must be based on some sort of informational advantage that is dissipated dis?si?pat?ed adj. 1. Intemperate in the pursuit of pleasure; dissolute. 2. Wasted or squandered. 3. Irreversibly lost. Used of energy. in public bidding situations.