Using unique data, this paper examines investment banks’ choice of peers in comparable companies analysis in mergers and acquisitions. We find strong evidence that product market space is amongst the most important factors in peer selection, but Standard Industrial Classification (SIC) codes, particularly three- and four-digit codes, do a poor job of categorizing related firms in this setting. Banks strategically select large, high growth peers with high valuation multiples, factors that are also posxitively related to premiums. Our evidence is consistent with target-firm advisors selecting peers with high valuation multiples to negotiate higher takeover prices.

本文使用独特的数据，研究了投资银行在并购可比公司分析中对同行的选择。我们发现强有力的证据表明，产品市场空间是同行选择中最重要的因素之一，但标准行业分类 (SIC) 代码，尤其是三位数和四位数代码，在这种情况下对相关公司进行分类的工作做得很差。银行战略性地选择估值倍数高的大型高增长同业，这些因素也与溢价呈正相关。我们的证据与目标公司顾问选择具有高估值倍数的同行来协商更高的收购价格是一致的。