Mergers and Acquisitions: Does Hiring Financial Advisors Make a Difference?

ABSTRACT This study conducts a meta‐analysis to address inconsistencies and fragmented understanding regarding the role of financial advisors in mergers and acquisitions (M&A). We aim to quantitatively synthesize existing empirical evidence to clarify the determinants influencing the engagement of financial advisors and, critically, how their characteristics and transaction contexts impact the operational and financial outcomes of M&A deals. Through a systematic literature review and meta‐analytic approach, we analyzed 65 empirical studies (articles, theses, and dissertations) to identify and classify variables explaining the selection and influence of financial advisors on M&A performance. Our analysis specifically correlated independent variables measuring financial advisor attributes (e.g., experience, competence, and reputation) with dependent variables reflecting operational performance (transaction completion time) and financial performance (e.g., CAR, SCAR, ROA, ROE, and EBITDA). The findings indicate that the ability to foster positive operational (shorter completion times) and financial outcomes is a primary driver for engaging financial advisors in M&A. Financial advisors demonstrably contribute to more efficient deal closures, higher financial returns, and reduced completion times. The meta‐analysis reveals significant moderating effects of financial advisor reputation and M&A complexity (proxied by size) on the relationship between advisor engagement and M&A performance, explaining heterogeneity in prior research. This study significantly advances M&A literature by providing a robust, quantitative synthesis that moves beyond prior inconclusive findings. We demonstrate that financial advisors are critical in navigating M&A complexities, and their effectiveness is contingent upon their reputation and the transaction's inherent complexity. By elucidating these moderating roles, our meta‐analysis offers a clearer, more nuanced understanding of when and how financial advisors make a difference, thereby informing both academic theory and practical decision‐making in M&A strategy.