While often viewed as a glamorous position, the role of CEO frequently comes with significant stresses and challenges that can impact the overall wellness of a company’s leader. With a proven link between CEO wellness and the success of a company, wellness is a factor that is often overlooked. As the hidden factor for successful mergers and acquisitions, CEOs who invest in their wellness can lead their companies more powerfully toward growth.

Merger and Acquisition Needs

When it comes to business, you either evolve and grow or find yourself falling behind—there is no “maintaining.” Stagnation is simply a sign of decline in today’s ultra-competitive business world. To avoid stalling, companies may want to focus their attention on expanding market share, growth, or strategic leverage. 

Mergers and acquisitions are an option for companies looking to propel themselves forward. While many people see mergers and acquisitions as a financial transaction and a time for leadership reshuffling, these deals are much more complex. Requiring leadership that is capable of managing the extensive attention to detail that these deals call for, as well as possessing high levels of patience and a strategic (and focused) vision, these deals often require a CEO’s due diligence. 

By giving careful thought and attention to balance sheets, transaction costs, and other financial factors, mergers and acquisitions can vastly benefit a company. An example of how these deals can quickly transform a business is when Disney acquired 21st Century Fox for $71 billion. This deal was more than just a financial exchange: it was a strategic move made by Disney to strengthen its future. 

Yet, despite the proven value of these deals, one factor is often overlooked: the physical and mental well-being of the business’s CEO. A CEO who invests their time in their wellness can better manage the involved nature of mergers and acquisitions and potentially generate a more secure future for the company.

Proof in Wellness’ Power

As the day-to-day schedules of a CEO load up with more demands, the wellness of these leaders matters. A CEO’s overall health, fitness, and presence during a merger and acquisition process can significantly impact a deal’s success. 

One thousand five hundred executives were analyzed for over a decade in a landmark study by Peter Limbach and Florian Sonnenburg titled “Does CEO Fitness Matter?” The study linked CEO fitness to higher levels of company profitability and more substantial returns on merger and acquisition announcements. In this study, “fitness” meant more than casual exercise; the fitness routines were on a level of conditioning and endurance needed for completing a marathon. 

So, why does CEO wellness correlate so strongly with mergers and acquisitions? Confidence and first impressions. Stamina and mental clarity. And setting a standard for sustainability.

Confidence and First Impressions

First impressions matter, especially when entering high-stakes mergers and acquisitions meetings. 

When communication is overwhelmingly non-verbal, a CEO’s physical presence can speak volumes before a word is even uttered. Confidence and professionalism can be seen immediately when a CEO enters a meeting. For merger and acquisition negotiations, where trust and authority are critical, a CEO’s overall wellness can highlight their leadership presence. 

In the same way that athletes always seek an edge to help them outperform their competitors, a CEO can use their health and wellness to get a leg up in corporate arenas. 

Stamina and Mental Clarity

These deals don’t just happen overnight. Mergers and acquisitions require long nights, intense focus, and resilience through rigorous due diligence and negotiations. CEOs who invest time in their fitness, building the kind of stamina needed to run a marathon, tend to lead firms that see successful returns from merger and acquisition activities. This endurance suggests that a CEO can remain fully present during the deal’s process, withstanding the pressures of the competition. 

Setting a Standard for Sustainability

When a CEO is dedicated to their health, a powerful standard is set for the organization, one that emphasizes wellness. This signals to current and future employees, partners, and investors that resilience and high standards are priorities for the company, with healthy CEOs projecting stability and reliability—two key characteristics for long-term, sustainable growth and leadership continuity. 

While CEO wellness may be overlooked, studies show that the physical and mental well-being of leadership can offer unique benefits and a competitive edge, which can make a difference when it comes time to make a deal.