Question

If so many mergers and acquisitions fail, why do executives still do them?​

If so many mergers and acquisitions fail, why do executives still do them?​

Homework Answers

Answer #1

There could be any reason for the failure of the merger and acquisition like

1. The mismatch between the deal and thinking than an actual scenario in the market

2. Lack of cultural coordination

3 Non-supportive government and other external condition

4. Negotiation error between the two parties etc.

So as I said, there could be the reason for the failures but still, merger and acquisition is still a succesful way of running a business effectively. This sometimes needs of the business to go for the merger seeing the marker condition. For many companies, this is the best way to keep their survival. So for the various strategic needs, a merger and acquisition is still a very popular way of doing business in a given market

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