In a Doing Business report published by the World Bank, the following statement was suggested: “From the economic point of view, common law is more efficient than civil law”. The objective of this research paper is to weigh two legal systems (French civil law and the US common law) and analyze the results of the economic analysis of the law of Mergers and Acquisitions (M&A). This is done by quantifying the impact on long-term performance. To carry out this research, a methodology was developed, and the results were evaluated. Two legal structures for M&A transactions were selected: the purchase of shares (share deal), and the purchase of assets (asset deal). Each of these acquisition structures was then subdivided into 11 steps—from preliminary information, letter of intent, due diligence, stock or asset purchase agreement and closing—to litigation with formal summons. Performance was then measured by taking into account time, cost and satisfaction factors. Time was broken down into person-days and the number of days, weeks, or months required to complete each step. French and US respondents were asked to fill out a questionnaire for a specific M&A transaction. Radar charts were used to compare the mean of each performance factor; an inter-factor analysis was carried out to check for correlations. The findings showed that a share deal in France is cheaper than in the US. Also, French participants express a greater degree of satisfaction than their US counterparts. The findings varied however, for the time factor. The authors conclude that the application of civil code and common law does not reveal substantial differences in either country for M&A transactions. One reason may be that in both France and the US, these transactions are carried out according to similar procedures.

The Doing Business report published by the World Bank suggests that, “From the economic point of view, common law is more efficient than civil law.” Is this somewhat alarming message also valid for Mergers & Acquisitions (M&A) transactions? This paper compares the economic attractiveness of common law (US) versus civil law (France), as related to these transactions. Because countries are competing more and more to attract business, this is an important aspect to consider.

Business Strategy Journal, Post-Merger Corporate Performance, Mergers and Acquisitions Transactions, Egyptian Technology Sector, Economic Reforms, Egyptian Companies, Financial Accounting Standards Board, Conglomerate Acquisition, Data Envelopment Analysis, Construction Sectors, Data Analysis.