Can Deal Failure Be Predicted?

Utpal Bhattacharya, HKUST School of Business and Management
Stacey E. Jacobsen, Finance Department


Using an ex-post realized measure of deal failure, the write-down of acquisition goodwill, we find in a sample of 1,400 completed acquisition deals, that, on average, goodwill exceeds 50% of the purchase price, is impaired for 24% of acquirers, and over 8