Acquisition can be a remarkably effective way to grow
a business rapidly, and generate high levels of profitability through synergies.

However, the majority of acquisitions fail to meet their desired objectives. Indeed, a 2004 study by McKinsey estimated that only in 23% of cases did an acquisition achieve a positive return on investment.

An often cited reason for this unacceptably poor track record is the fact that many acquisitions are opportunistic or reactive. This can lead to a buyer being poorly prepared and possibly unaware of alternative opportunities.