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Why do fees paid to M&A advisory firms differ per deal? : A multiple case study into perceived value in an M&A advisory firm context

Dekker, L. (2020) Why do fees paid to M&A advisory firms differ per deal? : A multiple case study into perceived value in an M&A advisory firm context.

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Abstract:Without a clear explanation, advisory fees that are earned by M&A advisory firms differ in height, even when deals appear to be similar. Research has shown that price can be influenced by the customer perceived value of a product or service; however this has not been researched for an M&A advisory firm context. This study aims to explore customer perceived value in an M&A advisory firm context. By building on existing theories on perceived value it asks: “How do managers of M&A SME advisory firms in the Netherlands, create perceived value for their customers during the pre-contract phase?”. The study investigates the importance and actionability of perceived value in an M&A advisory firm context. Based on existing theories on perceived value in other (services) contexts 9 semi structured interviews were held on perceived value. Next, after having analyzed the interviews, quantitative data on 31 deals were collected. The M&A advisory firm managers that were in charge of those deals all received questionnaires on the importance and actionability of the different aspects of perceived value. Based on the ratio advisory fee/deal size, two groups were created (high ratio/low ratio). The questionnaire results of the two groups were compared. The results indicate that functional value (quality) is the most important construct for perceived value, but a too strong focus on functional value (quality) decreases customer perceived value. Furthermore it seems that On this basis it is recommended that managers should spread their focus more evenly over the different aspects of perceived value. After functional value, emotional value is the most important and actionable construct. Further research is needed to gain a deeper understanding of perceived value , especially functional value, in an M&A advisory firm context.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/80475
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