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We fill a research void by identifying characteristics that influence the decision to hire investment banks as advisers in acquisitions of private targets. We find that a bidder is more likely to hire an investment bank when the deal is large (in both relative and dollar terms), when it uses equity financing, when it has less experience in acquisitions of private targets, and when it is a high-tech firm. A private target is more likely to hire an investment bank for advice when the deal is large (in dollar terms), when the bidder has low growth opportunities, and when the bidder is more exposed to potential bankruptcy.