Are bigger acquisitions always better?

Making an acquisition is a lot like getting married. About half the time, it doesn't work out. And the only people who “live happily ever after” are the lawyers. Nevertheless, the urge to merge seems to be on the rise again. More mega‐deals may be on the horizon. But is bigger always better? To answer this question, the authors analyzed four large acquisitions. They also examined what really enhances value, why some deals fail to add value, and some important accounting issues. © 2005 Wiley Periodicals, Inc.