Which of the following is not a reason why acquisitions fail?
A) The cultures of the acquiring and acquired firms clash
B) Attempts to realize synergies by integrating the operations of the acquiring firm and host-country government often run into roadblocks and take longer than forecasted
C) Inadequate preacquisition screening
D) Overpayment for assets of the acquired firm
E) Underpayment for assets of the acquired firm

Question

Quizplus · Accepted Answer

Underpayment for assets of the acquired firm is not a reason why acquisitions fail. However, overpayment for assets of the acquired firm can lead to financial strain and failure to achieve expected returns. Cultural clashes, challenges in realizing synergies, and inadequate preacquisition screening are all common reasons why acquisitions fail.

Which of the Following Is Not a Reason Why Acquisitions