Why Mergers Fail and How to Spot Trouble Early

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.

Authors

Publication Details

Journal
MIT Sloan Management Review
Published
2026-02-18
DOI
https://doi.org/10.63383/sgvj7835
Primary Topic
Corporate Finance and Governance
Type
article
Field-Weighted Citation Impact
0.00
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article

Why Mergers Fail and How to Spot Trouble Early

Henrik Cronqvist, Désirée-Jessica Pély
MIT Sloan Management Review
Corporate Finance and Governance
article

Why Mergers Fail and How to Spot Trouble Early

Henrik Cronqvist, Désirée-Jessica Pély
article en

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.

MIT Sloan Management Review
No poverty
Openalex Percentile: Top 52%
Corporate Finance and Governance
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Why Mergers Fail and How to Spot Trouble Early — Henrik Cronqvist, Désirée-Jessica Pély · MIT Sloan Management Review (2026) | TGRS Research Map | TGRS