Numerous studies have shown that roughly two out of three corporate acquisitions fail, as measured by the performance of the stock of the acquiring company. What if those odds could be flipped? What if it were possible to succeed two times out of three and just fail a third of the time?
In “Perfecting the Art of the Deal,” a working paper that applies research from "Billion-Dollar Lessons" to potential mergers and acquisitions, we suggest that this is possible. Our research found that almost half of the strategic failures that we studied stemmed from ill-conceived strategies that should never have been pursued. Applying the lessons derived from that research can help executives dodge problems and reshape strategies in ways that greatly increase the chances of success.