Study Reveals Slower Acquisitions Boost Company Values
Research indicates that a slower pace in corporate acquisitions can significantly enhance company values. A study co-authored by Jerayr “John” Haleblian, a professor of management at the University of California – Riverside, found that companies that space out their acquisition deals tend to enjoy higher stock values following these transactions.
Published in the Journal of Business Research, the study titled “Experience Schedules: Unpacking Experience Accumulation and Its Consequences” focused on how the timing between successive acquisitions—termed “experience schedules”—affects overall company performance. The analysis covered over 5,100 acquisitions made by companies within the S&P 1500 from 1992 to 2012.
Haleblian and his research team challenged the prevailing notion that rapid acquisition pacing maximizes profitability. Their findings suggest that companies which extend the time between acquisitions are rewarded by investors with improved stock performance.
“Gradually increasing the time between acquisitions can better position firms to learn and improve from each experience,” Haleblian stated. This approach allows companies to maximize the benefits of each buyout, enabling effective integration of talent, resources, and market share.
The study highlights the importance of taking time to assimilate new assets into a company’s culture and operations. Haleblian emphasized that it is essential for executives to absorb lessons from previous deals to refine internal processes. The concept is described as a means of reducing “acquisition indigestion,” which occurs when rapid deal-making overwhelms a company’s capacity for integration.
By extending the intervals between acquisitions, organizations can foster stability, allowing leaders to develop the necessary structures and routines to support new resources effectively.
To gain practical insights, the research team interviewed 17 senior executives involved in acquisitions across various sectors, including chemical, energy, and technology. One executive noted, “If you have fewer deals and more time in between, you can really focus on extracting the value out of that, and it’s less of a strain on the running organization.”
The implications of this research are clear for acquisition managers. Slowing down the acquisition process may lead to greater long-term success. Instead of hastily moving from one transaction to the next, companies could benefit from adopting a more deliberate and reflective pace to build their acquisition experience.
The study advocates for a strategic shift in how firms approach acquisitions, emphasizing the need for patience and thoroughness in order to truly capitalize on the potential advantages of each deal.
Further details of the research can be found in the article by Christopher B. Bingham and colleagues, published in the Journal of Business Research in 2026.
