Failure – pre-deal causes

Duncan N. Angwin

Chapter 60 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 155-157 from Edward Elgar Publishing

Abstract: This chapter analyses pre-deal factors leading to M&A failure, including managerial hubris, inadequate due diligence, lack of strategic fit and contested bids. It also examines the impact of cognitive biases, acquisition rate and a firm's prior experience. The chapter highlights how poor preparation, overpayment and non-value maximising motives often sow the seeds of post-acquisition difficulties.

Keywords: Failure; Motives; Cognitive bias; Behavioural bias; Empire building; Acquisition rate; Financial health; Acquisition experience; Strategic fit; Glamour acquirers; Contested bids; Non-value maximising motives (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
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