What Drives the Takeover Process? New Evidence from the Inner Workings of Internal M&A Teams

59 Pages Posted: 14 Mar 2018 Last revised: 10 Sep 2018

See all articles by Nihat Aktas

Nihat Aktas

WHU - Otto Beisheim School of Management

Audra L. Boone

Texas Christian University - M.J. Neeley School of Business

Alexander Witkowski

WHU - Otto Beisheim School of Management

Guosong Xu

WHU - Otto Beisheim School of Management

B. Burcin Yurtoglu

WHU - Otto Beisheim School of Management

Date Written: August 27, 2018

Abstract

This paper provides insights into the inner workings of internal corporate merger and acquisition teams using survey evidence from 65 firms from Austria, Germany and Switzerland. The responses indicate the growing reliance on a firm’s own employees for implementing takeover strategies. Firms are proactive in deal initiation, such that they rely more on their internal analysis to generate investment ideas and less on investment banks. Deals negotiated by CEOs are on average of better quality in terms of announcement returns. Moreover, M&A team factors can explain approximately 45% 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

Aktas, Nihat and Boone, Audra and Witkowski, Alexander and Xu, Guosong and Yurtoglu, B. Burcin, What Drives the Takeover Process? New Evidence from the Inner Workings of Internal M&A Teams (August 27, 2018). Available at SSRN: https://ssrn.com/abstract=3140400 or http://dx.doi.org/10.2139/ssrn.3140400

Nihat Aktas (Contact Author)

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Audra Boone

Texas Christian University - M.J. Neeley School of Business ( email )

Fort Worth, TX 76129
United States

Alexander Witkowski

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Guosong Xu

WHU - Otto Beisheim School of Management ( email )

Vallendar
Germany

B. Burcin Yurtoglu

WHU - Otto Beisheim School of Management ( email )

Chair of Corporate Finance
Burgplatz 2
Vallendar, 56179
Germany
+49 261 6509-721 (Phone)
+49 261 6509-729 (Fax)

HOME PAGE: http://www.whu.edu/forschung/fakultaet/finance-group/corporate-finance/

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