The Role of Internal M&A Teams in Takeovers
51 Pages Posted: 14 Mar 2018 Last revised: 16 Jun 2019
Date Written: June 14, 2019
This paper provides insights into the inner workings of internal corporate M&A teams using survey evidence from 65 firms from Austria, Germany, and Switzerland. The responses indicate considerable reliance on a firm’s own employees for implementing takeover strategies. We find that internal teams create the most value in the deal origination and post-merger stages by directing transaction rationales, screening targets, and employing performance metrics to assess post-merger success. Team size and financial experience are negatively associated with announcement returns, while having a more formal structure improves deal performance. Moreover, latent M&A team factors explain approximately 57% of the acquirer fixed effects in announcement return regressions.
Keywords: Mergers and Acquisitions, Financial Advisors, Takeover Process, Deal Performance
JEL Classification: G14, G34
Suggested Citation: Suggested Citation