When Does Acquisition Integration Succeed? Evidence from Inside the Integration Black Box

We penetrate the black box of post-acquisition integration by examining whether business unit leaders (BULs)-executives responsible for integrating and operating acquired targets-shape integration outcomes. Using natural language processing-based measures of realized integration outcomes and financial metrics, we find that BULs' target-industry experience increases (decreases) integration success (failures) through superior realization of transaction synergies. Other BUL attributes are unrelated to integration outcomes. Consistent with the importance of integration for acquisition success, such experience enhances acquisition performance. BULs' target-industry experience improves integration planning and their post-acquisition career outcomes but is unrelated to earlier stages of the acquisition process.