Question

why do companies that engage in serial acquisitions ultimately fail?

why do companies that engage in serial acquisitions ultimately fail?

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Answer #1

There are many reasons for the failure of these companies. The first reason is the lack of synergy and cultural imbalance among the different organizations that are acquired and kept under one umbrella. There is a lack of cultural adjustments and acquiring company fails. The second reason is the lack of strategic focus due to the diverse nature of acquisitions. It makes the parent company unable to to take strategic initiatives that could make the company's acquisitions to be successful. The third reason is the acquisition of organizations' issues, debt and existing conflicts with each acquisition. It will create chaos and resource diversion towards the different issues. It ultimately brings failure.

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