Why do so many mergers and acquisitions fail according to a mergers and acquisitions dataset? On paper, you would think that most mergers should succeed. In reality, they are likely doomed to fail. Some thought leaders estimate that as many as 70% of M&A (merger and acquisition) transactions fail. They don’t reach their financial results, the strategy doesn’t play out as it should, and turnover rates are significantly higher than expected. This creates undue stress on employees and slows the overall performance of both companies as they come together. Why are mergers and acquisitions so delicate? What can companies do to increase the chances of success? After exploring a mergers and acquisitions dataset we came up with three reasons why mergers and acquisitions fail and how these failures can be prevented.
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