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Growing through deals: A reality check

The size and frequency of deals matter less than how companies execute them.

growth through deals article, pursuing large deals or many deals, Corporate Finance

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The bigger a company gets, the harder it is to keep up with investors’ expectations for growth. Mergers and acquisitions are essential, but how big do deals need to be—and how frequent? Because a single deal that might double the market capitalization of a small company will scarcely register for a large one, many big companies pursue ever-larger deals—or a whole lot of smaller ones. Does either of those strategies more often lead to success?

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