Recent research indicates that companies may enhance their stock value by adopting a slower pace in corporate acquisitions. A study co-authored by Jerayr “John” Haleblian, a management professor at the University of California – Riverside, reveals that spacing out acquisition deals can lead to better financial outcomes for firms. The findings were published in the Journal of Business Research on December 9, 2025.
The comprehensive study, titled “Experience Schedules: Unpacking Experience Accumulation and Its Consequences,” analyzed over 5,100 acquisitions made by companies listed in the S&P 1500 from 1992 to 2012. Researchers found that firms that increased the interval between acquisitions typically saw a rise in their stock values, suggesting investors reward companies for taking the time to learn from each acquisition.
Understanding the Impact of Acquisition Timing
Haleblian noted that the traditional belief in rapid acquisition pacing for profitability is being challenged. He explained, “Our findings suggest that gradually increasing the time between acquisitions can better position firms to learn and improve from each experience.” This approach allows companies to effectively integrate new assets and refine internal processes, reducing the risk of “acquisition indigestion,” a term used to describe the overwhelm that can occur when companies engage in too many deals too quickly.
The study emphasizes that acquisitions can significantly boost profitability by adding valuable resources, such as talent and market share. However, it takes time to assimilate these new elements into a company’s existing structure and culture. By allowing a more deliberate approach to acquisitions, executives can enhance their decision-making and strategic planning.
To gain insights into the real-world implications of their findings, the research team interviewed 17 senior executives across various sectors, including chemical, energy, and technology. One executive remarked, “If you have fewer deals and more time in between, you can really focus on extracting the value out of that.” This perspective underscores the potential benefits of a more measured acquisition strategy.
Strategic Recommendations for Acquisition Managers
The research advocates for acquisition managers to reconsider their strategies. Instead of hastily pursuing multiple deals, companies could achieve greater long-term success by adopting a slower, more reflective pace. This approach not only allows for better integration of acquired resources but also fosters organizational stability.
As firms navigate the complexities of mergers and acquisitions, the study serves as a reminder that patience and strategic planning may yield better results in the corporate landscape. By prioritizing learning and adaptation, companies can enhance their overall performance and shareholder value.
For those interested in further details, the full study can be accessed in the Journal of Business Research, with the DOI: 10.1016/j.jbusres.2025.115749.
