home  /  library  /  performance-of-serial-acquirers
Articles & papers

Performance of Serial Acquirers: Toward an Acquisition Program Perspective

Tomi Laamanen and Thomas Keil · Strategic Management Journal, 2008 · Strategic Management Journal, vol. 29, no. 6, pp. 663-672

Strategy & readinessOwners contemplating a programmatic or roll-up strategy
Why it is on the shelf. The study that reframed serial acquisition as a program to be managed: among the most active U.S. acquirers, both a high rate of acquisitions and an erratic rate predicted worse performance, moderated by size, scope and experience.

The Institute's reading

Laamanen and Keil examined the most active acquirers across seven industry sectors and found that performance suffers not only when firms buy too fast but when they buy erratically, bursts and pauses, with acquisition experience, program scope and acquirer size softening but not erasing the penalty. The contribution is the frame: what matters is not any single deal but the design of the program, its pace, rhythm and capacity.

The Institute’s reading: this is the sobriety check for every roll-up thesis that crosses this site, and the empirical backbone for a judgment the practitioner shelf already holds: the capacity constraint in acquisitions is organizational digestion, not capital. For an owner planning several add-ons, the actionable translation is to set a pace the management bench can metabolize, keep it steady, and treat each completed integration, not each closing, as the gate to the next deal.

Key propositions

  • A high acquisition rate is negatively related to performance among serial acquirers.
  • Variability in the rate is independently harmful; erratic programs underperform steady ones.
  • Experience, program scope and size moderate the damage; they do not license speed.

In practice

  • Roll-up plans should specify pace and digestion gates, not just target counts.
  • A first acquisition is tuition for a capability; schedule the second only after the first is metabolized.
Acquisition Conciergeorientation · not legal, tax or valuation advice
Happy to dig into it. What would you like to pressure-test from Performance of Serial Acquirers: Toward an Acquisition Program Perspective: one of its propositions, how it applies to your situation, or where it disagrees with the rest of the shelf?