Nearly 80% of mergers and acquisitions fail in one way or another. Provide four possible reasons for this.

Question

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The Answer is

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Organization leaders make the decision to merge or acquire as an ego boost.

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Decision made out of desperation by an organization on an unsound operational footing.

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Acquisition made on an impulse when mediocre candidate suddenly became available.

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Acquirer has only a superficial understanding of target organization's market.

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Acquiring company and target company have incompatible business models.

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Overestimated ability to integrate the core competencies of the two companies.

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Poor due diligence fails to detect critical problems and risks.

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Acquirer paid too high a price.

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Poor negotiating skills or blunders in the negotiation process.

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Acquisition agreed before either organization is prepared to implement it.

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Failure to plan for integration of the two cultures.

Nearly 80% of Mergers and Acquisitions Fail in One Way