title={The M&A Exit Outcome of High-Tech Startups},
author={Carmen Cotei and Joseph Farhat},
journal={Multinational Finance Journal},
publisher={Multinational Finance Society; Global Business Publications},
keywords={mergers and acquisitions; entrepreneurial exit; innovation; technology-based startups},
abstract={In this paper we analyze which factors explain the M&A exit outcome of high-technology startups using the confidential version of the Kauffman Firm Survey data. Our findings reveal that innovation activity is the most important factor in explaining the M&A exit outcome which indicates that acquirers value the growth potential signaled through intellectual property rights, research and development activity and therefore, businesses with high quality innovations are the most attractive targets for acquisitions. We also show that new, high-tech ventures owned by highly educated entrepreneurs are more likely to exit via M&A. These owners have better access to financial and social capital, which positively impacts the entrepreneur’s ability to create a business that is harvestable and increases the chance that the business will, indeed, be harvested..},