The Role of Internal M&A Teams in Takeovers

51 Pages Posted: 14 Mar 2018 Last revised: 16 Jun 2019

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

Rotterdam School of Management, Erasmus University

B. Burcin Yurtoglu

WHU - Otto Beisheim School of Management

Date Written: June 14, 2019

Abstract

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

Aktas, Nihat and Boone, Audra and Witkowski, Alexander and Xu, Guosong and Yurtoglu, B. Burcin, The Role of Internal M&A Teams in Takeovers (June 14, 2019). 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

Rotterdam School of Management, Erasmus University ( email )

Rotterdam
Netherlands

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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