In the last few months, I noticed a number of stocks, mostly small caps, have received approaches/bids by larger companies. Examples include:
- Punch Taverns
- e2v Technologies
- Journey Group
On each occasion, I have been kicking myself because I have cast my eye over each stock but decided not to invest. So this got me thinking... how can I improve my chances of finding a stock which will rocket in share price following a take over bid.
In similar style to "The Profit Warning Survival Guide" e-book, could Stockopedia produce a "lessons learned" from small cap acquisitions?
Is there any science behind acquisitions or is it blind luck?
Which factors correlate with takeover bids? Intuitively, I would think a mix of Quality and Value would be the main driver, but are companies more likely to be bought when the majority shareholder is the founding CEO, for example?
Therefore, I would like to put it to the Stockopedia community for their thoughts and whether this is something we could request the team at Stockopedia to look into for us?
Note: I hold no long/short positions in any of the stocks mentioned above.