@ditkis: Banks? JP & Mutual, Wells and Wachovia for geo coverage & service diversification
@DavidWLocke No. I think the literature is very clear, M&As fail. Still the acquiring company does get to keep some things that work.
Three out of four acquisitions fail; they destroy wealth for the buyer's shareholders, who end up worse off than they would have been had the deal not been done. But it doesn't have to be that way, argue the authors. In evaluating acquisitions, companies must look beyond the lure of profits the income statement promises and examine the balance sheet, where the company keeps track of capital. It's ignoring the balance sheet that causes so many acquisitions to destroy shareholders' wealth