Antecedents of target selection by private equity and strategic acquirers: a review and research agenda

Purpose This study aims to examine the contemporary mergers and acquisitions market, which has evolved into a shared domain where private equity (PE) firms and strategic acquirers co-exist, yet how these distinct acquirer types select their targets within the same market remains a gap. To address this, we conduct a systematic literature review to answer four questions: What theoretical lenses explain target selection? In which country contexts has it been studied? What characteristics drive target selection? and What research methods have been used? Design/methodology/approach The study systematically reviews 170 articles following preferred reporting items for systematic reviews and meta-analysis, (2020) guidelines and applies theory, context, characteristics and methods (TCCM) framework to organise the findings. Findings Drawing on TCCM insights, the study proposes a conceptual model explaining how strategic and PE acquirers select targets and outlines future research agenda for each TCCM dimension. Practical implications Practically, the study holds actionable insights for target firms, mergers and acquisitions (M&A) advisors and corporate development teams in improving deal positioning, structuring and acquirer-specific screening. Originality/value The paper offers comparative analysis of how acquirer identity (strategic vs PE) shapes acquisition decisions and develops a holistic model conceptualising target selection as a dynamic process influenced by antecedents (independent variables), leading to outcomes such as deal completion or acquirer-type preference (dependent variables) and introduces “acquirer orientations” as key moderators.