The #1 job of a CEO is vision, values and culture. That true for mergers & acquisitions (M&A) as well. Owning the vision means making sure the tactical merger & acquisition choice matches the overarching company strategy. Owning the values and culture means making sure the merger or acquisition is culturally accretive.
Since 83% of mergers & acquisitions fail, we know most CEOs don’t get this right. Coupling that with knowing that 70%+ of value creation for growth-oriented private equity firms comes from inorganic growth leads to the conclusion that those that do get this right reap oversized rewards.