Study

Sample

Main results

Hoffmeister and Dyl [17]

84 cash tender offers during 1976 and 1977

The multivariate discriminant analysis shows that the most decisive variables in determining success are the attitude of the bid and the target size. The size of the bid premium has no impact.

Walkling [18]

158 cash tender offers between1972 and 1977

The logistic regression shows that an increase in the bid premium, a toehold or the payment of solicitation fees have a positive impact on the probability of success. Conversely, hostile offers and the existence of a competing bid decreases the probability of success.

Holl and Kyriazis [21]

238 M&As that occurred in the UK between 1980 and 1989

The logistic regression shows that the attitude of the bid and the wealth effect of a bid (whether measured in terms of abnormal returns or bid premium) are key determinants of success. Large toeholds have a positive impact on M&A success. Moreover, the bid outcome is non-linearly related to target director holdings.

Flanagan et al. [19]

991 tender offers during the period 1985 through 1994

The logistic regression shows that: focusing M&As (when the bidder and the target belong to the same industry), cross-border M&As, the existence of termination fee and bigger toeholds have a significant, positive, effect on the M&A outcome. Hostile offers and the existence of competing bidders have a significant, negative, impact on the success of an attempted M&A. The bid premium and the target profitability were not significant determinant of the success of a M&A.

Branch and Yang [20]

1097 deals between 1991 and 2000

The multivariate prediction model shows that the most significant variables are the attitude of the bid and the target relative size. While the debt ratio of the target has a significant positive effect on the success of an attempted M&A, the percentage of shares sought by the potential acquirer has a negative effect. Cash offers are also more likely to succeed. Finally, the bid premium is not significant in the prediction model.

Branch et al. [14]

1196 deals between 1991 and 2004

The empirical results show that the attitude of the bid, the arbitrage spread, the method of payment and the percentage of shares sought by the potential acquirer are the most significant variables to predict M&A success.

Betton et al. [23]

10,806 control contests over the period 1973-2002

The probability that the target will be successfully acquired increases when the offer is a pure cash offer, when the bidder has a toehold, when the bid is a tender offer and the bidder is a listed firm but decreases when the target has a poison pill and if the offer is rejected by the target management.