Abstract

Chinese companies appear to be enjoying a golden age of deal making: in 2014 alone, they made 154 outbound M&A deals, with a total deal value of $26.1 billion. But Chinese acquirers complete just 67 percent of their outbound deals, on average, a rate that badly trails those of developed-world acquirers.
Golden Opportunities in Jeopardy
Several forces have contributed to the surge in outbound Chinese M&A and are changing the game for acquirers. But failed deals represent enormous missed opportunities. The main culprits are flawed, unclear M&A strategies and ineffective deal management.
Studying Failure for the Keys to Success
Even deals that are completed often fall short of their goals because of poorly planned and executed postmerger integration. Chinese acquirers must immediately commit themselves to investing heavily in the skills, capabilities, and international talent needed for M&A activity on the global stage.​