Pre-announcement M&A activity and its effect on M&A outcomes
This Cass Business School study examines the process of merger and acquisition transactions (M&As) to infer how the due diligence process is affected by the properties of a deal, as well as the impact of due diligence on deal negotiations and deal success.
Key findings include:
- Longer due diligence results in a higher likelihood of deal success
- Longer due diligence is to the advantage of the buyer (and to the disadvantage of the seller)
- Due diligence is done more quickly on public companies
- Due diligence is done more quickly on larger targets
- Most M&A leaks are likely to be intentional
Read this study to get a better understanding of the due diligence process required to achieve deal success.