Acquiring firms is more likely to realize synergies when managerialism and hubris are kept in check.

Question

Quizplus · Accepted Answer

Managerialism and hubris can lead to overconfidence and a lack of thorough analysis when making acquisition decisions, which can ultimately hinder the realization of synergies. When these factors are kept in check, firms are more likely to make informed decisions and successfully integrate the acquired company, leading to synergies.

Acquiring Firms Is More Likely to Realize Synergies When Managerialism