Or, Why You’re Yelling at Your Refrigerator. Acquihiring is based on the idea of finding a startup that fits your business. In practice, integrating a small company is fraught with challenges.

As M&A activity rebounds with AI and tech consolidation driving record valuations, corporate development teams face an unprecedented challenge: the very deals that promise the most strategic value are also the most likely to fail.

After analyzing 200+ acquisitions over five years, we've uncovered a disturbing pattern: 68% of acquired teams experience significant performance degradation within 18 months, regardless of deal size or strategic fit.

Mergers and acquisitions (M&A) are strategic tools for companies to expand, diversify, or gain competitive advantage. While financial analysis is crucial, the role of corporate culture is often underestimated.

M&A transactions require navigating a myriad of regulatory requirements, from antitrust laws to international compliance and government approvals.

Earn-outs in acquihires seem like a smart move—tie payouts to performance and keep everyone aligned. But in reality, they can spark a mess of financial friction that unravels the deal.

M&A is not just about financials; it’s about integrating people. M&A transactions can be disruptive, with employees facing uncertainty about job security, role changes, and new cultures.

Retention can be a hidden problem in acquihires, when the very people justifying the deal’s price tag decide they’re not sticking around.