A CEO who has raised capital ten times may still lack the relevant experience and knowledge necessary to carry out a successful M&A transaction. The two situations may look similar from the outside. Both involve investors, valuation, term sheets, and lawyers. But the skills are different, the risks are different, and the traps are different.
MIT Sloan Management Review finds that 46% of all M&A deals are ultimately undone, with an average time from acquisition to divestiture of a full decade. The deal closes. The value leaks out over years.
