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Deals will take longer as execs kick the tires

Deals will take longer as execs kick the tires

by Rick Turoczy on February 17, 2005

Merger veteran Dennis Block believes the era of the four-day deal is dead. If anyone would know, it would be Block. A partner in the corporate mergers and acquisitions practice at Cadwalader Wickersham & Taft, block has had a legal advisory assignment on five of the 10 biggest mergers in U.S. history.

Yes, there was a time, during the peak of the biggest M&A; wave in U.S. history, when a few executives made offers to buy rivals on a Thursday and announced a merger agreement the next Sunday morning.

Swept up in the zeitgeist, executives shunned negotiation and study for big and headline-grabbing deals that immediately swelled egos and later shrunk profits.

“Everything got based upon more that we have to announce the deal on Sunday than we have completed as much diligence that needed to be done,” Block said. “The scandals, the requirements of Sarbanes-Oxley – which really do weigh heavy on an acquirer – have forced companies to do more kicking of the tires.”

Deals will take longer as execs kick the tires

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