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Increasingly, companies see mergers and acquisitions as a strategic tool and expect to benefit from synergies – improvements in competitiveness, customer value, or product innovation – that can be achieved by integrating two entities. This added complexity means executives have a more difficult task trying to identify, value, and negotiate closure on attractive deals. Also, as investment banks pitch deals more aggressively, executives fear being trumped by competitors and thus feel more pressured to act. To improve the chances of success in merger and acquisition efforts, the authors offer suggestions for screening potential candidates strategically, setting the “right” price, and negotiating preemptively to outrun competitors.

My local soccer team has spent its entire existence to date struggling in the lower reaches of English football. But a couple of years ago, the club raised more than a few eyebrows by pulling off what most people regarded as a transfer coup. Now the player in question was no world‐beater but he was an established performer at a much higher level. So was the move a success? Unfortunately not. In fact, in both football and business terms it was a disaster. The player spent most of the year on the treatment table and started just two games all season. Despite this, he still picked up his hefty paycheck every month. The result? At the end of the campaign the club was relegated and very nearly went out of business.