Kraft-Heinz split offers investor lesson — beware of the hyped merger

Forbes cited a book co-authored by Feng Gu in an article about the split of Kraft and Heinz. The split became the latest acknowledgement of what Baruch Lev and co-author Feng Gu in their book, “The M&A Failure Trap: Why Most Mergers and Acquisitions Fail and How the Few Succeed,” noted, as many studies have affirmed, that between 70% and 75% of corporate mergers fail to deliver the value they promised. Lev and Gu worked from a sample of 40,000 actual merger cases globally.