Investigating the deal making failure in M&A: deal makers' perspective in Brazil

Investigando o fracasso em negociações de F&A: a perspectiva de negociadores no Brasil

Una investigación sobre el fracaso en negociaciones de fusiones y adquisiciones: la perspectiva de negociadores en Brasil

Augusto Cesar Silva Sales Marco Tulio Fundão Zanini About the authors

Abstract

Why do merger talks collapse? – an exploratory study about the contributing factors behind ‘wedding cold feet' and deal making failures in Mergers and Acquisitions according to the perspective of active deal making professionals in Brazil. One basic question has encouraged the present study: after all the effort, expectations and money often invested in deal making, why are M&A transactions simply abandoned, even when the benefits to the business, shareholders, customers and employees seem to be clear?

Keywords:
Mergers and acquisitions; Due diligence; Deal breakers; M&A failure

Departamento de Administração da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo Avenida Professor Luciano Gualberto, 908, sala F184, 05508-900 São Paulo / SP Brasil, Tel./Fax 55 11 3818-4002 - São Paulo - SP - Brazil
E-mail: rausp@usp.br