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Updated: Jul 27, 2026
12:49
Quantification of Site-specific Protein Lysine Acetylation and Succinylation Stoichiometry Using Data-independent Acquisition Mass Spectrometry
Published on: April 4, 2018
Are you paying too much for that acquisition?
R G Eccles1, K L Lanes, T C Wilson
1Advisory Capital Partners, Jupiter, FL, USA.
Harvard Business Review
|October 28, 1999
Summary
Most company acquisitions fail to create value because acquirers overpay. Determining the optimal purchase price requires calculating synergy value and maintaining discipline to walk away from unprofitable mergers and acquisitions.
Area of Science:
- Business Strategy
- Corporate Finance
- Mergers and Acquisitions
Background:
- Despite decades of evidence, most corporate acquisitions do not generate value for acquiring firms.
- Executives continue to pursue an increasing number of, and larger, acquisition deals annually.
Purpose of the Study:
- To present a systematic method for determining the optimal acquisition price.
- To identify key factors influencing the justification of acquisition prices.
Main Methods:
- Analysis of acquisition pricing strategies.
- Calculation of "synergy value" as a determinant of maximum justifiable price.
- Emphasis on disciplined decision-making in mergers and acquisitions.
Main Results:
- Acquirers often pay more than an acquisition is worth intrinsically.
- The maximum justifiable price is directly correlated with the potential synergy value generated by combining companies.
- Failure to create value is often due to overpayment rather than absolute price.
Conclusions:
- A systematic approach to valuation, focusing on synergy, is crucial for successful acquisitions.
- Corporate governance must incorporate discipline to ensure acquisitions meet financial return expectations.
- Future acquisition returns depend on implementing practical, value-driven M&A processes.
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