Firms that invest in acquisitions, such as private equity firms and investment bankers, only achieve their end-goal by raising the market value of the acquired companies. Acquiring organizations are called capital market firms. Their ultimate financial gain is realized from the buy-sell spread when they divest each investment. But research studies reveal that only a minority achieve their targeted ROI. One study reported that less than half of mergers achieve their goal.1 Why such poor results? Do they over plan but under execute their economic value creation activities?

 

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