Evidence suggests that mergers and increased profitability do not necessarily go hand in hand.

Question

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There have been cases where mergers have not resulted in increased profitability. Studies have shown that in some cases, the process of merging two companies can be cumbersome and affect the efficiency of operations, ultimately leading to lower profitability. Additionally, there can be challenges in integrating two different cultures and management styles, which can also impact profitability.

Evidence Suggests That Mergers and Increased Profitability Do Not Necessarily