29/11/2025
Acquisitions are more financially and strategically successful if they are more about what the acquiring company can do to help the acquired company than the other way around.
When the focus is on what the acquired company can do for the acquirer, the acquirer tends to have to pay top dollar for the acquired company and the acquirer can do little to help pay for the high takeover premium.
Thus, in the failure-ridden world of acquisitions, the logic of this diversify-to-eliminate-the-shareholder-problem drives companies toward very low success rate approaches.
Here's why:
Why successful acquisitions are harder than you think.