How CEO Wellness Impacts Mergers And Acquisitions Outcomes

In business, you’re either evolving or losing ground. The notion of “maintaining” is an illusion: stagnation signals decline in today’s hyper-competitive business environment. For companies focused on expanding market share, growth, or strategic leverage, mergers and acquisitions (M&A) are an option. While most people see M&A as a financial transaction and leadership reshuffling, these deals are deeply complex, requiring extensive attention to detail, high levels of patience, and a strategic (and focused) vision.

M&A can transform a business almost overnight. For example, when Disney acquired 21st Century Fox for $71 billion, it was more than a financial exchange: it was a strategic move strengthening Disney’s future. Whether to secure market share, gain technology or necessary talent, or adopt key defensive measures, M&A deals can vastly benefit a company. Typically, due diligence includes balance sheets, transaction costs, and other financial factors. However, one critical factor is often overlooked: the CEO’s physical and mental well-being.

While it might seem unrelated, a CEO’s health, fitness, and presence can significantly impact M&A success. A landmark study by Limbach and Sonnenburg analyzed 1,500 executives over a decade, linking CEO fitness to higher levels of company profitability and more substantial returns on M&A announcements. In this context, “fitness” means more than casual exercise; it’s a level of conditioning and endurance needed for completing a marathon. Conversely, a study by Biggerstaff, Cicero, and Puckett found that CEOs ranking in the top 25% of frequent golfers—playing at least 22 rounds annually—were associated with companies showing lower operational performance and firm value. Here are three key reasons CEO wellness correlates with stronger M&A performance:

1. Confidence, Presence, And First Impressions

Communication is overwhelmingly non-verbal, and a CEO’s physical presence speaks volumes before the first word is shared. Confidence, self-discipline, and professionalism are displayed before the first words are spoken, especially in high-stakes M&A meetings. For M&A negotiations, where trust and authority are paramount, a CEO’s health and appearance can magnify their leadership presence. Fair or not, perception matters in business; how we look and carry ourselves often influences how seriously we’re taken. Just as athletes seek any edge to outperform their competitors, CEOs can leverage health and wellness to gain a competitive advantage in corporate arenas.

2. Stamina And Mental Clarity

M&A deals are not overnight ordeals. They demand extended hours, intense focus, and resilience through rigorous due diligence and negotiations. Unsurprisingly, CEOs with the fitness level required to complete a marathon tend to lead firms that see positive returns from M&A activities. This endurance suggests a leader who can withstand the pressures of competition and public scrutiny and remain fully present until the job is done. Sleep and recovery are also essential for peak cognitive and executive functioning, particularly during the high-stakes evaluations that define M&A outcomes.

3. Setting A Standard For Sustainability

A CEO’s commitment to health is a buffer from the detrimental effects of executive stress and sets a powerful standard for the organization. This emphasis on wellness signals to employees, future hires, partners, and investors that resilience and high standards are priorities. Healthy CEOs project stability and reliability, which is crucial for long-term, sustainable growth and leadership continuity. Most importantly, a CEO who prioritizes their well-being is likelier to have a longer tenure, which tends to create more shareholder value than short-tenured CEOs in M&As, according to a study appearing in Finance Research Letters.

In 2025, mergers and acquisitions activity projects to surge, with some estimating several hundred billion dollars in deals within the year’s first quarter alone. As competition intensifies, the minor details matter the most. CEO wellness can be an overlooked but unique (and strong) competitive advantage. For the savvy executive, prioritizing their well-being could mean the difference between an average return and an exceptional one.

SOURCE FORBES