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MIT Sloan Management Review 2026

Why Mergers Fail and How to Spot Trouble Early

Henrik Cronqvist; Désirée-Jessica Pély

Abstract

Nearly half of all M&A deals are eventually undone, taking an average of 10 years to unwind. Research reveals that poor initial fit and unforeseen disruptions are the typical causes of failed corporate mergers, which ultimately destroy shareholder value, absorb leadership attention, and damage credibility. The Corporate Divorce Matrix can help leaders diagnose which path their deal is likely to follow and make smarter, more sound decisions at every stage of the M&A process.

DOI
10.63383/sgvj7835
Sources
openalex

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