Takeover duration and negotiation process
研究了收购谈判时长与竞争、学习的关系，发现潜在竞争压力越大，谈判越短，且并购市场竞争激烈。
Abstract We study the relations between takeover negotiations duration, competition and learning, focusing on the private phase of bidder‐initiated transactions. While the negotiation goes on, both parties learn about true deal synergies. At any moment, rival bidders can show up and compete for the target. Using a discrete‐time finite‐horizon dynamic programming approach, we derive the equilibrium relations between the negotiation duration, the pressure of potential competition and the learning process. Next, we perform a calibration exercise on a large sample of merger negotiations with hand‐collected data from the Securities and Exchange Commission filings. Our results provide evidence of a very competitive M&A (Mergers and acquisitions) market.