Major reasons of failure of Mergers are as follows :
•
Flawed corporate strategy for either or both companies.
• One company sugarcoats the truth, the other buys a Power Point pitch.
• Sub-optimum integration strategy for the situation.
• Cultural misfit, loss of key employees after retention agreements are up.
• Acquiring company’s management team inexperienced at M&A.
• Flawed assumptions in synergies calculation.
• Ineffective corporate governance, plain and simple.
• Two desperate companies merge to form one big desperate company.
• An impulse buy or panic sell gets shoved down the board’s throat.
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