Investors Suggestions to Acquirer Company about Selecting the Target Company in a Merger Deal

This study provides suggestions to Acquirer Company about selecting the target company in a merger deal from investor's point of view. This present study is fully based on primary data. Primary data have been gathered from equity investors through administering a well-structured interview schedule. The statistical tools such as simple mean, cluster analysis, discriminant analysis, chi-square test, correspondence analysis, ANOVA, post-hoc analysis and canonical correlation have been utilized to analyze the data. This study concludes that equity investors feel that merger deals with new venture companies is highly risky. This study finds that the factor, “number of family members” strongly influences investors’ suggestions to Acquirer Company.