Study goals
We examine how hiring boutique financial advisors influences the completion and duration of M&A transactions in Brazil. We propose that M&A transactions are more often completed and completed faster when the counterparts hire a boutique financial advisor.
Relevance / originality
We argue that the highest the status of the boutique the greater de rate of completion and the faster de completion.
Methodology / approach
Using longitudinal data on 7.475 M&A transactions in Brazil during 1998-2018.
Main results
The findings confirm that when both parties hire a high-status financial advisor there are greater chances that M&A is completed. Moreover, the better tier classification, when we have financial advisors in both sides can also affect the completion of the acquisition, making it faster. Finally, contrary to expectations, if both parts hire a boutique advisor the duration of the pre-M&A process tends to increase, and the M&A take longer to be completed. These results indicate that high status financial advisor with a better tier classification can improve the completion of the M&A transaction.
Theoretical / methodological contributions
These results indicate that high status financial advisor with a better tier classification can improve the completion of the M&A transaction.
Social / management contributions
These results indicate that high status financial advisor with a better tier classification can improve the completion of the M&A transaction.