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

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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)

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.

Suggested Citation

  • Ephraim Kwashie Thompson & Changki Kim, 2020. "Post-M&A Performance and Failure: Implications of Time until Deal Completion," Sustainability, MDPI, vol. 12(7), pages 1-31, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2999-:d:343085
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    3. Rama Krishna Reddy & Frances Fabian, 2020. "Information Asymmetry and Host Country Institutions in Cross-Border Acquisitions," Management International Review, Springer, vol. 60(6), pages 909-938, December.
    4. Just, Ruben & Sommer, Friedrich & Heubeck, Tim & Meckl, Reinhard, 2023. "Sustainability as a stumbling block in closing acquisitions? The joint effect of target and acquirer ESG performance on time to completion," Finance Research Letters, Elsevier, vol. 58(PB).
    5. Mirosław Wasilewski & Serhiy Zabolotnyy & Dmytro Osiichuk, 2021. "Characteristics and Shareholder Wealth Effects of Mergers and Acquisitions Involving European Renewable Energy Companies," Energies, MDPI, vol. 14(21), pages 1-20, November.

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