Inter-Regional Cross-Border M & A: The Impact of Deal Importance and Target Firms’ Public Status on Deal Duration

This study explores the relationship between inter-regional cross-border mergers and acquisitions (M&A) and deal duration, with a focus on how deal importance and the public status of target firms moderate this relationship. Grounded in regionalization theory, the research suggests that inter-regional cross-border M&As generally experience longer deal durations than intra-regional deals due to the heightened complexities involved in managing organizational and environmental differences across regions. However, this relationship is moderated by two factors: the importance of the deal to the acquiring firm and whether the target firm is publicly listed. Deals of greater importance to the acquirer may facilitate more efficient decision-making and resource allocation, potentially reducing deal duration. Meanwhile, the public status of the target firm, which typically brings increased transparency and more timely access to information, helps mitigate information asymmetry and, in turn, may shorten deal duration. The empirical analysis, based on a global dataset of 755 completed cross-border M&A deals from 2012 to 2023, supports these hypotheses. The findings contribute to a more nuanced understanding of how inter-regional dynamics influence cross-border M&A durations and underscore the moderating roles of deal importance and the public status of target firms. This research advances academic discussions on cross-border M&A strategies while providing practical insights for firms looking to optimize their international acquisition efforts.