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Valuation Gaps and Deal Outcomes in Cross-Border M&A: The Mitigating Role of Investment Banks

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  • Yang, Senyu

Abstract

Cross-border mergers and acquisitions (M&A) have emerged as a critical avenue for global investment, yet they frequently encounter negotiation breakdowns due to valuation disagreements between acquiring and target firms. While prior research has primarily focused on institutional and cultural determinants of such valuation gaps, the intermediary mechanisms that may alleviate these disparities remain underexplored. This study addresses this gap by investigating how investment banks moderate the impact of valuation gaps on deal outcomes in cross-border M&A. Utilizing a dataset of 1,842 transactions spanning 2010 to 2024 from the Refinitiv Eikon and Zephyr databases, logistic regression analyses reveal that larger valuation gaps significantly decrease the likelihood of deal completion (β = −0.63, p

Suggested Citation

  • Yang, Senyu, 2025. "Valuation Gaps and Deal Outcomes in Cross-Border M&A: The Mitigating Role of Investment Banks," Simen Owen Academic Proceedings Series, Scientific Open Access Publishing, vol. 2, pages 171-180.
    • Handle: RePEc:axf:soapsa:v:2:y:2025:i::p:171-180
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