Slowing Down Corporate Acquisitions May Actually Increase Company Value, According to New Research

In the high-pressure world of mergers and acquisitions, speed is often seen as a competitive advantage. Companies race to close deals, expand their portfolios, and stay ahead of rivals. However, a new large-scale academic study suggests that this long-held belief may be flawed. According to the research, slowing down the pace of acquisitions can lead to stronger corporate performance and higher stock market value.

The findings come from a comprehensive study co-authored by Jerayr “John” Haleblian, a professor of management at the University of California, Riverside’s School of Business, along with several other prominent management scholars. The research challenges traditional assumptions about acquisition strategy and offers a more measured approach to deal-making.

What the Study Examined

The research focuses on something the authors call “experience schedules,” which refers to the timing between a company’s successive acquisitions. Instead of simply counting how many acquisitions a firm has completed, the study looks at how much time passes between each deal and how that timing affects performance.

To reach their conclusions, the researchers analyzed more than 5,100 acquisitions carried out by companies listed in the S&P 1500 index over a 20-year period from 1992 to 2012. This long time frame allowed them to observe patterns across economic cycles, industries, and leadership changes.

Company performance was measured using stock market reactions following acquisition announcements, a commonly used indicator of how investors perceive the value of a deal.

The Core Finding: Slower Can Be Better

The central takeaway from the study is clear: companies that gradually increased the time between acquisitions were rewarded with higher stock values compared to firms that pursued deals in rapid succession.

This result directly contradicts earlier research, which often suggested that maintaining a steady or fast acquisition pace helped firms capitalize on momentum and experience. Instead, the new findings indicate that spacing out acquisitions allows organizations to learn more effectively from each deal.

Rather than rushing from one acquisition to the next, firms that slowed down were better positioned to absorb lessons, adjust strategies, and improve execution over time.

Why Time Between Deals Matters

Acquisitions are complex undertakings. They involve far more than signing contracts and transferring ownership. Each deal typically brings in new employees, technologies, processes, physical assets, and organizational cultures. Integrating these elements smoothly requires significant time and attention from senior leadership.

When acquisitions happen too quickly, companies may experience what the researchers describe as “acquisition indigestion.” This occurs when the organization becomes overwhelmed by continuous integration efforts, leading to inefficiencies, cultural clashes, and missed opportunities to extract value from the acquired assets.

By extending the time between deals, companies give themselves the breathing room needed to:

• Fully integrate new employees and teams
• Align systems, workflows, and corporate cultures
• Refine internal processes based on lessons from previous acquisitions
• Stabilize leadership focus and organizational priorities

The study suggests that this extra time improves both execution quality and organizational learning.

Insights from Executives on the Ground

To complement their quantitative analysis, the researchers conducted interviews with 17 senior executives who had direct experience managing acquisitions. These executives came from a range of industries, including chemical, energy, and technology sectors.

Across these interviews, a consistent theme emerged: fewer deals with more time in between reduced strain on the organization. Leaders noted that slower pacing allowed teams to focus on extracting value from existing acquisitions instead of constantly shifting attention to the next transaction.

This real-world feedback reinforced the statistical findings and added practical context to the study’s conclusions.

Organizational Stability Plays a Key Role

Another important factor highlighted in the research is organizational stability. Frequent acquisitions can disrupt established routines, reporting structures, and decision-making processes. When firms slow down, they can build stronger internal systems that better support newly acquired resources.

Over time, this stability helps organizations develop rules, routines, and governance structures that make future acquisitions more effective. Instead of reacting to each deal as a one-off event, firms begin to manage acquisitions as a structured, repeatable process.

How Investors Respond

From an investor’s perspective, slower acquisition pacing appears to signal discipline, confidence, and long-term thinking. The study found that stock markets tended to reward firms that spaced out acquisitions, likely because investors recognized the reduced risk of integration failure.

Rapid deal-making can raise concerns about overextension, managerial distraction, and inflated valuations. In contrast, a deliberate approach suggests that leadership is focused on sustainable value creation rather than short-term expansion.

Broader Context: What This Means for M&A Strategy

These findings add to a growing body of research showing that learning quality matters more than experience quantity. Simply doing more deals does not automatically make a company better at acquisitions. What matters is the ability to reflect, adapt, and improve between each experience.

For acquisition managers and corporate strategists, the message is straightforward: speed should not be the default goal. A thoughtful, well-paced acquisition strategy may produce stronger outcomes than aggressive deal-making, especially in industries where integration challenges are high.

Why This Research Matters Now

In an era of intense competition, private equity activity, and rapid consolidation across industries, companies often feel pressured to move quickly. This study serves as an important reminder that restraint can be a strategic advantage.

As organizations grow larger and more complex, the ability to pause, learn, and stabilize may become even more critical. The research encourages leaders to rethink how they define success in mergers and acquisitions, shifting the focus from volume to value.

About the Researchers

The study was co-authored by a team of respected scholars, including:

• Jerayr “John” Haleblian, Professor of Management at UC Riverside and an Anderson Presidential Chair in Business
• Christopher B. Bingham, Professor of Strategy and Entrepreneurship
• Kalin D. Kolev
• Koen Heimeriks

Their combined expertise spans strategy, organizational learning, and corporate growth, lending strong credibility to the findings.

Final Thoughts

The idea that slowing down can lead to better results may feel counterintuitive in today’s fast-moving business environment. Yet this research provides compelling evidence that patience, reflection, and thoughtful pacing can significantly improve acquisition outcomes.

For companies looking to grow through mergers and acquisitions, the lesson is not to stop acquiring, but to acquire smarter, not faster.

Research Paper:
Experience Schedules: Unpacking Experience Accumulation and Its Consequences
https://doi.org/10.1016/j.jbusres.2025.115749