Few merger and acquisitions achieve their financial goals.One such example is Daimler-Chrysler.Why did this M&A attempt not working out as planned?
A)The two companies manufactured auto parts that were not interchangeable
B)The two companies were too geographically far apart to communicate
C)The corporate cultures were not able to be meshed effectively
D)The corporate training was not efficient
E)The German and US governments were creating obstacles too large for the companies to overcome

Question

Quizplus · Accepted Answer

The corporate cultures were not able to be meshed effectively. The merger between Daimler Benz and Chrysler in 1998 was plagued by cultural clashes. The German and American management styles and work ethics were vastly different, and the companies failed to integrate effectively. The post-merger integration was also poorly executed, leading to employee resentment and low morale. Eventually, Daimler sold Chrysler to private equity firm Cerberus in 2007.

Few Merger and Acquisitions Achieve Their Financial Goals