While deals such as the Musk-Twitter fight have the market transfixed, just how common are failed M&A deals and what do they mean for the future of M&A deals?
The reality is that while dealmakers have every intention to successfully conclude a merger or acquisition, there is always a risk of deals falling through. In fact, the failure rate of mergers and acquisitions is somewhere between 70% to 90% In addition to Twitter, there are several other examples of leading deals that have collapsed, either for regulatory challenges, in the case of NVIDIA and SoftBank Group (SBG) or because of failing to account for cultural differences, as was the case for America Online and Time Warner in 2001. The reasons for failed deals differ and are invari...
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