Why Strategic Capacity Is the Missing Link in M&A Success: White Paper
A well-prepared M&A transaction is critical to realizing deal value—yet studies consistently report that 70% to 90% of transactions fail to achieve...
1 min read
George Sandmann, Founder
:
Jul 9, 2025 3:49:38 PM
A well-prepared M&A transaction is critical to realizing deal value—yet studies consistently report that 70% to 90% of transactions fail to achieve their intended outcomes (HBR, The New M&A Playbook). The root causes often lie in overlooked fundamentals: leadership dependency, undocumented processes, customer concentration, and unreliable financials.
These breakdowns frequently surface late—in due diligence or post-close—undermining integration and eroding value.
At Growth-Drive, we envision a better way. We imagine a perfected market in which 90% of M&A outcomes succeed—not by luck, but by design. That design is Strategic Capacity: a business’s ability to deliver predictable profits, sustainable growth, and transferable value—independent of its founder or key individuals. Value creation is the result of redesigning a business so that it will predictably and sustainably grow free cash flow. Right? The data is in: analyzing Strategic Capacity scores and predicts value creation potential.
Private equity and strategic acquirers increasingly prioritize operational maturity. Value-driven due diligence is no longer a best practice—it’s a requirement.
We believe Strategic Capacity is the missing link. It helps both buyers and sellers prepare not just for a transaction—but for post-close performance.
To support you and your clients, we’ve prepared this white paper:
“Strategic Capacity as a Fundamental Driver of Business Value Creation.”
It offers a practical, actionable framework to assess and grow what matters most.
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