Is timing everything? The timing of an M&A announcement in a merger wave

T.T. Doan, Padma Rao Sahib, Arjen van Witteloostuijn

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

The authors investigate the pre-merger process, defined as the period between the announcement and completion of an M&A (mergers and acquisitions) deal. Specifically, the authors examine if the timing of the announcement in a merger wave affects whether or not the M&A deal is completed, and how long this pre-merger process takes. The authors conduct a textual analysis of the 150 largest abandoned M&A deals in the sample. From this, the authors find that competing bidders, regulatory concerns, and shareholder opposition from the acquirer are major roadblocks in the pre-merger process, and that these hurdles often occur jointly. Subsequently, the authors examine a sample of 2,802 announced M&As across four industry waves and find that M&A deals initiated earlier in a merger wave are more likely to be completed and are completed more speedily.
Original languageEnglish
Title of host publicationAdvances in mergers and acquisitions
EditorsC. Cooper, S. Finkelstein
PublisherEmerald Group Publishing Limited
Pages1-16
Number of pages16
Volume19
ISBN (Print)978-1-83982-329-9
DOIs
Publication statusPublished - 30-Nov-2020

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