We show that serial acquirers appear to strategically shift between methods of payment in
acquisitions based on changes in their own characteristics. In particular, they attempt to take
advantage of their overvalued stock in making stock-financed acquisitions. Acquirer
overvaluation significantly affects acquisition dynamics, increasing the speed to the next
acquisition and affecting the propensity to pay with stock. Target overvaluation and uncertainty
does not appear to play a significant role in the acquirer’s choice of payment method, suggesting
that avoiding the winner’s curse is at best a secondary consideration for buyers.