In a significant finding for corporate strategy, a recent study reveals that companies can enhance their stock value by spacing out acquisitions. The research, co-authored by Jerayr “John” Haleblian, a professor of management at the University of California – Riverside, indicates that taking longer intervals between deals can lead to more profitable outcomes for firms.
The study, published in the Journal of Business Research, uncovers the concept of “experience schedules,” which refers to the timing between successive acquisitions. Analyzing over 5,100 acquisitions made by firms in the S&P 1500 from 1992 to 2012, Haleblian and his team found that those who extended the time between acquisitions generally saw better performance, as measured by stock value changes post-deal.
Haleblian explained that companies that allow more time between acquisitions are better positioned to learn from each experience. “Our findings suggest that gradually increasing the time between acquisitions can better position firms to learn and improve from each experience and thus get the most out of each buyout,” he stated. This perspective challenges previous assumptions that a quicker acquisition pace was the path to greater profitability.
Acquisitions can enrich a company by adding essential assets, including talent, equipment, and market share. However, the research highlights that successful integration of these new resources requires time. Rapid acquisitions can lead to “acquisition indigestion,” a term used to describe the overwhelming challenge of integrating new operations effectively.
According to the study, companies that took a more deliberate approach to acquisitions not only outperformed their faster-paced counterparts but also fostered greater organizational stability. This stability allows leaders to build the necessary structures, rules, and processes that maximize the potential of new resources.
To further validate their findings, the research team conducted interviews with 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, and it’s less of a strain on the running organization.”
The implications of this research are clear for acquisition managers. Slowing down and adopting a thoughtful, reflective approach to acquisitions could lead to more significant long-term success. As companies navigate the complexities of mergers and acquisitions, the study emphasizes the importance of learning from every experience rather than rushing into the next deal.
For those interested in the detailed findings, the study is titled “Experience Schedules: Unpacking Experience Accumulation and Its Consequences” and is available in the Journal of Business Research (2026). The DOI for further reference is 10.1016/j.jbusres.2025.115749. This research adds a valuable perspective to the ongoing conversation about effective acquisition strategies in today’s competitive business landscape.
