study-shows-leaks-jeopardise-ma-deals

Study shows leaks jeopardise M&A deals

An analysis of M&A deals between 1994 and 2007 reveals that leaked deals are more likely to fail or, when they do complete, take longer to reach closure.

By Sameera Anand

June 10, 2008

An analysis of MA deals over 13 years corroborates that leaks can be detrimental to both deal closure and the amount of time it takes to reach closure. The study also shows that leaks do not help the seller to achieve a higher price.

On behalf of Intralinks, Cass Business School analysed MA deals between 1994 and 2007. Cass analysed both disclosed and undisclosed MA deals. It started with a database of 350,000 deals announced during the relevant period and filtered this to exclude privatisations and leveraged buyouts, as well as deals which had not closed and other deals which did not meet the parameters of the study.

Leaks were divided into...

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