In my last post, Why Innovation Through Acquisition Is Such A Darn Good Idea, I commented on the crucial importance of mergers and acquisitions in the business innovation ecosystem. From an entrepreneur’s-eye-view, M&A provides lucrative shareholder exits. Viewed through the lens of the public company, innovation-through-acquisition can be a legitimate strategy for entering exciting new technologies or markets by first allowing startups to do the de-risking. And yet history shows that, in at least half of all cases, after the deal closes, acquisitions sour. (There are dozens of studies and papers, and estimates of how many M&A deals fail to meet financial expectations run from 50 percent to as high as 90 percent.)
To read the original article: Why Acquisitions Fail - Business Insider
