Why most companies stop after one acquisition, and how to build a repeatable M&A process
For most companies, the first acquisition is also the last. 62% of all acquirers in our dataset of more than 1.6 million recorded acquisitions have completed exactly one deal. Of those, only 11% were active as a buyer again in the past two years.
Our industry report M&A as a System comes to a clear conclusion: what separates systematic acquirers from everyone else is less about capital than about organization. This article looks at what holds companies back after their first deal, and which building blocks make M&A repeatable.
This article covers one chapter. The full report also looks at the role of financial investors, the geographic hotspots of M&A, the outlook for next year and the assessments of six M&A experts. For more insights, download the report M&A as a System here for free.
In this article you'll learn:
- Why low acquisition activity is often not a deliberate decision
- Which barriers M&A experts see after the first deal
- Why systematic M&A does not require a large M&A team
- Five building blocks you can put in place without restructuring your organization
One deal, then silence
How often companies acquire again
| Group | Figure |
|---|---|
| Acquirers with exactly one acquisition | 62% of all acquirers |
| Of these, active again in the past two years | 11% |
| Strategic acquirers active in the past two years | 55% |
| Acquirers with a systematic M&A approach | 8% |
This is an observation, not a judgment. For many companies, using M&A selectively is the right call. The relevant question is whether low acquisition activity reflects a deliberate strategic decision, or whether M&A as a growth option has simply never been assessed systematically. Even regular acquirers are often self-critical on this point:
“We are one of those companies ourselves that have completed only four acquisitions over the past five years. That is actually far too few.” Dr. Dirk Pramann, Mition GmbH Mid-Market Investments
What holds companies back after the first deal
The six experts we interviewed name resources, process know-how and management capacity rather than capital or financing as the main cause. Three barriers stand out.
Barriers to repeat acquisitions, according to the experts
| Barrier | Expert view |
|---|---|
| Fear of failed integration | “In my view, the fear that the integration will fail is even greater than the concern about broken-deal costs.” Dirk Sachse, CFN Corporate Finance Nord |
| Ability to close | “I believe significantly more companies enter the process, but only a small number actually make it to a deal.” Dr. Dirk Pramann, Mition |
| Resources | “A structured M&A process requires resources that often only larger acquirers are able or willing to commit.” Jens M. Wellbrock, Renneberg |
One point came up repeatedly that is not visible in the data itself: the limiting factor is often not the willingness to acquire, but the ability to bring a transaction to completion.
Size helps, but it does not decide
Strategic acquirers generate around 4.5 times the average revenue of opportunistic acquirers. At the same time, they are on average only about half as old. Systematic M&A is therefore not a matter of long corporate tradition, and size and acquisition activity likely reinforce each other.
“Companies that master M&A as a repeatable growth channel can scale significantly faster.” Daniel Funk, CEO & Co-Founder, CVT Partner
The central finding of the report: systematic M&A is not a privilege of the largest or best-capitalized companies. It is primarily a question of the structures a company puts in place, and those structures can be built deliberately.
Five building blocks of a repeatable M&A process
From single transactions to a continuous process
| Building block | What it means in practice | Where to start |
|---|---|---|
| Clear responsibilities | M&A has a named owner instead of being a side task for whoever has capacity | Assign ownership for pipeline and process |
| Defined acquisition criteria | Size range, regions and submarkets, must-have and exclusion criteria, price ceiling | Put them on one page |
| Continuously maintained target pipeline | Targets are known before a sale process starts, not when an advisor calls | Build a longlist for your core segment |
| Fixed cadence | Pipeline and market are reviewed regularly, independent of current deals | Quarterly review of targets and active competitors |
| Predefined decision paths | It is clear who decides what before an opportunity lands | Agree how fast an opportunity is assessed, e.g. within five working days |
The starting point does not have to be a larger M&A team. What matters is moving M&A from a series of individual transactions to a continuous process. How far to go is a question of ambition. Some experts recommend adopting the transaction discipline of private equity. Hendrik Rathje, Partner at Möhrle Happ Luther, goes furthest:
“Build M&A as a dedicated business unit, just as you would build a strategic sales function.” Hendrik Rathje, Partner, Möhrle Happ Luther
The hard part: keeping the system running
The real challenge often begins after the set-up. A systematic approach has to be maintained day to day: markets need to be monitored, target universes kept current and changes at companies and competitors spotted early. This is where data- and AI-powered solutions can make a structural difference, by making information that used to be researched and consolidated manually available continuously, whether or not a transaction is underway. Technology does not replace the strategic decision. It makes a defined M&A approach sustainable with a manageable effort.
Get the full industry report
The full report contains the complete buyer analysis, the role of financial investors, the regional hotspots, the outlook for next year and all six expert assessments. For more insights, download the report M&A as a System here for free.
Frequently asked questions
How many companies make only one acquisition?+
62% of all acquirers in the StrategyBridgeAI dataset have completed exactly one acquisition. Only 11% of them were active as a buyer again in the past two years.
Why do companies stop acquiring after their first deal?+
The experts interviewed for the report point to resources, process know-how and management capacity rather than capital. Fear of a failed integration and the ability to actually close a deal are named as key barriers.
Do you need a large M&A team to acquire systematically?+
No. According to the report, the starting point is not necessarily a larger team but clear structures: responsibilities, defined criteria, a maintained target pipeline, a fixed cadence and predefined decision paths.
What are the building blocks of a systematic M&A process?+
Clear responsibilities, defined acquisition criteria, a continuously maintained target pipeline, a fixed review cadence and decision paths that are agreed before an opportunity arrives.
Are serial acquirers mainly large, established companies?+
They are larger on average, with around 4.5 times the revenue of opportunistic acquirers, but they are also about half as old. Systematic M&A can become part of a growth strategy early on.
Want to keep your target pipeline current without manual research every quarter? Book a demo and see StrategyBridgeAI live with your own use case.
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