Post-M&A Performance and Failure: Implications of Time until Deal Completion

Ephraim Kwashie Thompson and Changki Kim
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Ephraim Kwashie Thompson: Korea University Business School, Korea University, Seoul 02841, Korea
Changki Kim: Korea University Business School, Korea University, Seoul 02841, Korea

Sustainability, 2020, vol. 12, issue 7, 1-31

Abstract: Firm values change substantially between deal announcement and closing, risking renegotiation or termination. For deals that eventually close, does waiting longer to close benefit the acquirer post-M&A? We investigate whether the time that elapses until deal completion is an indicator of post-M&A performance and failure. We find that deals taking an optimum time to implement perform better, supporting the due diligence hypothesis, while taking too long to close is an indication of poor post-M&A performance and subsequent failure, supporting the overdue hypothesis.

Keywords: M& A performance; M& A failure; time until deal completion; due diligence hypothesis; overdue hypothesis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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