A recent study reveals that companies may significantly enhance their corporate value by spacing out acquisitions rather than pursuing them in rapid succession. The research, co-authored by Jerayr “John” Haleblian, a professor of management at the University of California – Riverside, was published in the Journal of Business Research. It highlights how the timing between acquisitions, termed “experience schedules,” impacts stock performance following these deals.
The comprehensive analysis examined over 5,100 acquisitions made by firms in the S&P 1500 over a span of 20 years, from 1992 to 2012. The findings challenge previous beliefs that faster acquisition rates yield the highest profitability. Instead, the study suggests that taking longer intervals between deals allows companies to learn from past experiences and optimize each acquisition’s benefits.
According to Haleblian, “Our findings suggest that gradually increasing the time between acquisitions can better position firms to learn and improve from each experience.” This approach, he notes, enables companies to absorb and integrate new assets effectively, reducing the risk of what the study refers to as “acquisition indigestion.” Rapid acquisitions can overwhelm a company’s ability to integrate new operations, leading to potential inefficiencies.
The research team found that companies that consistently extended the time between acquisitions outperformed those that rushed into deals. This strategy allows executives to better assimilate lessons from previous acquisitions, refine internal processes, and foster a stable organizational environment. By delaying subsequent transactions, companies can build the structures and routines necessary to support newly acquired resources.
To validate their findings, the researchers conducted interviews with 17 senior executives involved in acquisitions across various sectors, including chemical, energy, and technology. One executive emphasized the benefits of a deliberate approach: “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 study illustrates a shift in perspective for acquisition managers. Instead of hastening from one deal to the next, a more thoughtful, reflective pace in acquisitions may lead to greater long-term success. As companies navigate the complexities of integrating new assets, the emphasis on building experience through time may prove invaluable.
The implications of this research are significant for businesses looking to maximize their growth potential through acquisitions. By adopting a strategic approach that prioritizes learning and integration, companies could enhance their overall value and ensure a more sustainable growth trajectory.
For further details, refer to the study by Christopher B. Bingham et al, titled “Experience schedules: unpacking experience accumulation and its consequences,” published in the Journal of Business Research in 2026.