The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving cover image

507: Decoding M&A: Why 70% of Deals Fail and the Scorecard for Predicting Success

The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving

CHAPTER

The Pitfalls of Mergers and Acquisitions

This chapter explores the high failure rate of mergers and acquisitions, attributing it to over-optimism among CEOs and the misalignment of their incentives. It emphasizes the critical need for diligent assessments and accountability in acquisition decisions while critiquing existing compensation structures that reward deal-making regardless of outcomes. By analyzing data from a vast pool of acquisitions, the chapter highlights significant factors influencing success and failure in the M&A landscape.

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