I think the QB analogy is a good one, but there’s one more dimension that is critical. The discipline of the acquiring org is just as critical to M&A success as the quality of the target.
A significant number of those QBs get drafted early by teams with losing records, a consequence of being poorly managed organizations and generally lacking in the athletic talent (offensive line, receivers, running backs) necessary to make a talented QB successful.
When the acquiring organization is financially and operationally disciplined, experienced in integration and focused on the right outcomes, I think the success rate skews much higher.
There are entire companies built on this model (eg, LVMH).
I think the QB analogy is a good one, but there’s one more dimension that is critical. The discipline of the acquiring org is just as critical to M&A success as the quality of the target.
A significant number of those QBs get drafted early by teams with losing records, a consequence of being poorly managed organizations and generally lacking in the athletic talent (offensive line, receivers, running backs) necessary to make a talented QB successful.
When the acquiring organization is financially and operationally disciplined, experienced in integration and focused on the right outcomes, I think the success rate skews much higher.
There are entire companies built on this model (eg, LVMH).
I could not agree more.