One of the factors on which a successful acquisition depends is the ability to capture synergies. Which of the following makes this a difficult task?
A) The acquirer tends to "overcommunicate" during the process
B) The synergies dissipate over the time that it takes to complete the deal
C) It is very hard to integrate the cultures of the companies involved
D) Synergies don't want to be captured; they wish to remain free

Question

Quizplus · Accepted Answer

The integration of different corporate cultures is a complex and challenging process that requires careful planning, communication and execution. It can be very difficult to overcome cultural barriers and achieve the expected synergies. Option A is incorrect because effective communication is crucial for a successful acquisition. Option B is not necessarily true since synergies can be identified and captured even after the deal is completed. Option D is not a valid reason as synergies are not sentient beings that can wish to remain free, but rather potential benefits that can be unlocked through strategic planning and execution.

One of the Factors on Which a Successful Acquisition Depends