Too often, acquirers approach inorganic growth without paying attention to their capabilities or the capabilities of the company they’re acquiring. Successful acquirers, by contrast, make M&A deals that either enhance their distinctive capabilities systems, leverage those capabilities systems, or do both.

These companies have been rewarded with deals for which the compound annual growth rate averages 12 % points more in shareholder return than M&A deals by other buyers in the same industry and region, according to our research.