In a significant shift from established practices, a recent study suggests that extending the time between corporate acquisitions may enhance company performance and stock value. Conducted by a team led by Jerayr “John” Haleblian, a professor at University of California – Riverside, this research analyzed over 5,100 acquisitions within the S&P 1500 index from 1992 to 2012. The findings, published in the Journal of Business Research, emphasize the benefits of a more measured approach to acquisitions, termed “experience schedules.”
The study challenges the long-held belief that rapid-fire acquisitions are the key to maximizing profitability. Instead, it suggests that companies that allow longer intervals between deals tend to see improved stock performance. Haleblian and his colleagues argue that taking time between acquisitions enables firms to learn from their experiences and effectively integrate new assets into their existing operations.
Impacts of Acquisition Timing
Acquisitions can significantly enhance a company’s capabilities by adding essential resources such as talent, technology, and market share. However, Haleblian notes that the process of incorporating these new elements requires careful attention and time. The research indicates that a slower acquisition pace allows executives to absorb lessons from previous deals and refine their internal processes, ultimately reducing the risks associated with what the study describes as “acquisition indigestion.”
The study highlights that companies benefit from fostering organizational stability during acquisition periods. By building the necessary structures, rules, and routines, businesses can better support their newly acquired resources. Interview insights from 17 senior executives across the chemical, energy, and technology sectors reinforce this perspective. One executive remarked, “If you have fewer deals and more time in between, you can really focus on extracting value out of that, and it’s less of a strain on the running organization.”
Recommendations for Acquisition Managers
The research presents a clear message for acquisition managers: adopting a more deliberate and reflective approach may lead to greater long-term success. Instead of hastily moving from one acquisition to the next, businesses might achieve better outcomes by slowing down the process.
As companies navigate the complexities of mergers and acquisitions, the study emphasizes the importance of learning and adapting to past experiences. By taking the necessary time to integrate and optimize new assets, firms can ultimately enhance their corporate value and increase shareholder satisfaction.
For further details, refer to the study by Christopher B. Bingham et al, “Experience schedules: unpacking experience accumulation and its consequences,” published in the Journal of Business Research, DOI: 10.1016/j.jbusres.2025.115749.
