From barriers to strategic readiness: how decision-makers build confidence in M&A under uncertainty

Purpose This study examines how decision-makers interpret barriers in mergers and acquisitions (M&A) and how these perceptions shape strategic confidence in pre-acquisition decision-making under conditions of uncertainty. Design/methodology/approach Drawing on survey data from 257 firms engaged in or considering M&A activity, the study employs a multi-stage quantitative approach. A Friedman test establishes a hierarchy of perceived barriers, while categorical regression with optimal scaling (CATREG) analyses the relationship between barrier recognition and three dimensions of strategic confidence: implementation capability, competitive advantage, and economies of scale. Findings The results reveal a clear hierarchy of perceived barriers, with economic conditions, ineffective team integration, target valuation, and cultural differences emerging as the most salient challenges. Importantly, perceived barriers do not uniformly undermine confidence. Instead, they explain implementation-oriented confidence more strongly than strategic outcome confidence. Cultural differences are positively associated with confidence in execution, suggesting that awareness of complexity enhances perceived readiness, while ineffective team integration consistently erodes confidence across dimensions. Practical implications For practitioners, the findings suggest that effective M&A decision-making depends less on minimizing perceived barriers and more on systematically identifying and prioritizing them. Managers should interpret confidence not as certainty of success but as preparedness for execution, using barrier recognition as a tool for strategic alignment and integration planning. Originality/value This study contributes to M&A research by shifting attention from post-acquisition outcomes to the role of perceived barriers in shaping strategic confidence during the pre-acquisition phase. Rather than conceptualizing barriers solely as obstacles, the findings suggest that their recognition may also support implementation readiness by functioning as diagnostic inputs for planning, coordination, and strategic alignment. In this way, the study offers a more nuanced perspective on how organizations prepare for M&A under conditions of uncertainty.