Why Do Most Mergers And Acquisitions Fail?

1.	Why Do Most Mergers And Acquisitions Fail?
Answer» Like so MANY things, M&A is “easier said than done.” In practice it’s very difficult to acquire and INTEGRATE a different company, actually realize synergies and ALSO turn the acquired company into a profitable division. Many deals are also done for the wrong reasons, such as CEO ego or pressure fromshareholders. Any deal done without both parties’ best interests in mind is likely to fail. Like so many things, M&A is “easier said than done.” In practice it’s very difficult to acquire and integrate a different company, actually realize synergies and also turn the acquired company into a profitable division. Many deals are also done for the wrong reasons, such as CEO ego or pressure fromshareholders. Any deal done without both parties’ best interests in mind is likely to fail.

Answer»

Like so MANY things, M&A is “easier said than done.” In practice it’s very difficult to acquire and INTEGRATE a different company, actually realize synergies and ALSO turn the acquired company into a profitable division. Many deals are also done for the wrong reasons, such as CEO ego or pressure fromshareholders. Any deal done without both parties’ best interests in mind is likely to fail.

Like so many things, M&A is “easier said than done.” In practice it’s very difficult to acquire and integrate a different company, actually realize synergies and also turn the acquired company into a profitable division. Many deals are also done for the wrong reasons, such as CEO ego or pressure fromshareholders. Any deal done without both parties’ best interests in mind is likely to fail.

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