Question

Describe reasons on mergers succeeding or failing

1 Mergers Succeeding

2 Mergers Failing

Answer 1

Mergers are transactions of great importance, not only for organizations involved but for many stakeholders. Success or failure of such enterprises may have consequences enormous for the shareholders of an organization, creditors, employees, competitors, and community. Empirical evidence indicates a high rate of failure of mergers in terms of creating value for shareholders. This study examines the causes of merger failure and offers a possible solution to make the merger successful. The internal audit has evolved from its traditional role to an active advisory. Internal auditors can ensure a successful merger process.