What are the Effects of Strategy Consultants, Financial, and Legal M&A Advisors on M&A Success?

57 Pages Posted: 8 Jul 2021 Last revised: 22 Sep 2021

See all articles by Alexander Schmitz

Alexander Schmitz

Paderborn University

Soenke Sievers

Paderborn University; TRR 266 Accounting for Transparency

Date Written: May 25, 2020

Abstract

This paper empirically evaluates the effects of various merger and acquisition (M&A) advisors on perceived M&A success by using survey data from M&A experts around the globe. The dataset includes three different M&A advisor types including legal/tax/audit advisors, financial advisors, and, most importantly, strategy consultants. In addition, we are able to employ a comprehensive control framework that considers the functional setup of the M&A organization of firms, e.g., whether M&A activities are organized at the headquarters or at the business unit level. Our main results show that, ceteris paribus, strategy consultants increase M&A success by up to 3.7%, thereby exceeding benefits from other M&A advisors, such as financial advisors by more than one percentage point. Finally, M&A success is improved the most if M&A advisors are hired regularly. The effects from the M&A advisors are partially mediated by the M&A process standardization channel.

Keywords: Mergers, Acquisitions, M&A success, M&A advisors, M&A functions

JEL Classification: G34

Suggested Citation

Schmitz, Alexander and Sievers, Soenke and Sievers, Soenke, What are the Effects of Strategy Consultants, Financial, and Legal M&A Advisors on M&A Success? (May 25, 2020). TRR 266 Accounting for Transparency Working Paper Series No. 55, Available at SSRN: https://ssrn.com/abstract=3874903 or http://dx.doi.org/10.2139/ssrn.3874903

Alexander Schmitz (Contact Author)

Paderborn University ( email )

Warburger Str. 100
Paderborn, 33098
Germany

Soenke Sievers

Paderborn University ( email )

Warburger Str. 100
Paderborn, 33098
Germany

HOME PAGE: http://www.upb.de/accounting

TRR 266 Accounting for Transparency ( email )

Warburger Straße 100
Paderborn, 33098
Germany

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