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Figure Figure 2 Growth that compounds

The deal governance audit

A four-question audit for supervisory boards and deal teams before signing: testing whether the deal sits in the value-creating or value-destroying half of the distribution.

A worksheet with four rows for M&A governance under an empirical 50/50 baseline: comparing folklore assumptions with empirical reality across valuation, customer retention, integration depth, and price discipline.RISK DIMENSIONValuation, interface,integration speed,retention.THE 80% MYTH ASSUMPTIONWhat consulting folkloreassumes.THE 50% EMPIRICALREALITYWhat academic evidencedemonstrates.THE MONDAY DECISIONConcrete governanceaction for the deal team.Four rows corresponding to the four primary operational fracture points. Under a 50/50 baseline, these four choicesdecide which half of the distribution the transaction enters.

Reference & Evidence

Source: Author's framework synthesizing empirical integration literature: Craninckx & Huyghebaert (2011), Homburg & Bucerius (2005), Shi et al. (2017), and Schmitz et al. (2020).