Do I Really Need You? The Impact of External Advisors Onm&A Dynamic Capabilities

External M&A advisors significantly impact a firm’s M&A decisions. Do advisors impact just individual M&A projects as one-off events or do they have a lasting impact on a firm’s M&A capability in a dynamic M&A environment? Our research attempts to understand the interplay of an internal M&A function and external M&A advisors as antecedents of constantly shaping a firm’s M&A approach to suit changing circumstances. This study builds on the concept of dynamic capabilities, enabling an organization to continuously adapt in a dynamic environment. Using survey data from 205 acquirers in the German-speaking countries, we provide evidence for the impact of external advisors on M&A dynamic capability but also highlight their limitations as compared to internal resources. Our research thereby emphasizes external sources’ contribution to certain elements of dynamic capabilities but also highlights that dynamic capabilities are idiosyncratic to the firm so that they should not be fully outsourced