Question

Describe reasons on mergers failing

Describe reasons on mergers failing

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Answer #1

the reasons for mergers failing are :

  • cultural differences - the acquired and acquiring firms may be very different in terms of work culture
  • lack of common vision - mergers are entered into by top management without a common work ethos or goal
  • size of organizations - large size of the merging entities slows down the decision-making process and compromises on the agility and quick decision-making time of the combined organization
  • people management - overlap of job functions can make synergies from human resources difficult to realize
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