The study by the Cass Business School, entitled The Good, The Bad And The Ugly: A Guide To M&A In Distressed Times, examined 12,339 deals over 25 years, including 2,917 acquisitions of distressed businesses.
Overall the study found that acquisitions of distressed businesses created short term value for shareholders but did not improve returns in the long run.
Professor Scott Moeller, director of M&A research at Cass, said: "When companies acquire a distressed asset, they are buying something that is bleeding immediately.
"Unless they can stop the blood loss, it can be very value destructive."
However, Paul Holohan, chief executive of Richmond Capital Partners, said that price paid is always highly important and on a par with, rather than more important than an integration plan.
He said that in a distressed situation, post acquisition planning is a different process than in a conventional acquisition because of the time pressures on the acquirer.
"By its very nature, distressed M&A occurs when a company is in trouble and tensions are high," he said.
"This gives rise to customers, who get wind of the situation, taking their business elsewhere, thereby further exacerbating the problem. It also results in people who are important to the running of the company leaving because of the uncertainty of their future."
He said that to combat this, it is vital to act quickly and to establish excellent communications with staff and customers.
Legendary GE chief executive Jack Welch described post-deal integration as "the last great managerial challenge" and it is estimated that at least 50% of all acquisitions, both standard and distressed, fail to realise expectations.
Holohan said: "The completion of an M&A is no more than a new starting point – future success depends on integrating the acquisition and the staff. As always, planning is vital, but easily overlooked in the adrenalin rush of the M&A."
"The first 100 days are vital in establishing procedures, culture change, clear financial and operational reporting guidelines as part of the overall business plan for the future."
