Which of the following is not a reason for the failure of an acquisition to generate the gains originally expected of it?
A) Poor post-acquisition integration
B) Overestimation of the potential gains to be derived from synergy
C) The high cost of making acquisitions
D) Lack of pre-acquisition screening
E) Overestimation of the potential costs of realizing synergies

Question

Quizplus · Accepted Answer

Overestimation of the potential costs of realizing synergies is not typically a reason for failure; rather, underestimation of costs or overestimation of synergies can lead to failure.

Which of the Following Is Not a Reason for the Failure