Imagine for a moment that you, as the chief executive officer of a publicly traded corporation, are about to make the biggest business decision of your life. Stacked before you on a conference table are the papers required to complete a merger between your company and one of almost equal size in a related industry. Across the table, the CEO of the company you're about to buy wears a wry smile; he's about to make his shareholders very happy. Doubts creep into your mind. You know the odds are against you. You're familiar with the research that indicates only about three of every 10 big mergers pay off in the long run. Most of the rest fail outright, and those that don't fail produce marginal returns at best. What you're experiencing are the natural effects of what we've come to call the m&a paradox. This article examines the distinctive qualities of the top dealmakers and show how they stay focused on a few critical decisions at each major juncture of the deal process.

Bain research has found that the companies most successful at creating long-term shareholder value tend to be constant acquirers through boom and bust.