In a significant shift in understanding corporate acquisitions, a recent study reveals that spacing out acquisition deals can enhance a company’s value. The research, co-authored by Jerayr “John” Haleblian, a professor of management at the University of California – Riverside, indicates that longer intervals between transactions yield better stock performance. This work, published in the Journal of Business Research, challenges longstanding beliefs about acquisition strategies.
The study, titled “Experience Schedules: Unpacking Experience Accumulation and Its Consequences,” analyzed over 5,100 acquisitions from companies within the S&P 1500 index over a 20-year period, from 1992 to 2012. Findings suggest that firms that allow more time between acquisitions are rewarded with higher stock values from investors. Haleblian notes, “Gradually increasing the time between acquisitions can better position firms to learn and improve from each experience.”
The research counters previous studies that advocated for a more rapid acquisition pace. While acquiring new companies can enhance profitability through increased talent, technology, and market share, it often requires time to effectively integrate these assets into a company’s existing structure and culture. Haleblian emphasizes the importance of this integration phase, stating that a slower pace helps reduce the risk of “acquisition indigestion,” a scenario where companies struggle to absorb the rapid influx of new operations.
Companies that strategically increase the time between acquisitions demonstrate improved performance, as executives are better able to reflect on lessons learned from prior deals. This additional time facilitates effective integration of new employees and resources while allowing management to refine internal processes. The study highlights that a more measured approach fosters organizational stability, enabling leaders to build the necessary frameworks that support their new acquisitions.
To gain practical insights, the research team interviewed 17 senior executives involved in acquisitions across various sectors, including chemical, energy, and technology. One executive noted, “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’s implications are clear for acquisition managers: adopting a more deliberate and reflective pace may lead to greater long-term success. Rather than hastily moving from one deal to the next, companies are encouraged to take the time necessary to build their acquisition experience effectively.
This research underscores the evolving understanding of corporate acquisition strategies and suggests that patience can be a virtue in the fast-paced world of business. For further details, refer to the study by Christopher B. Bingham and colleagues in the Journal of Business Research (2026), DOI: 10.1016/j.jbusres.2025.115749.
