I need some help on these questions.
Discuss the major cause of acquisition failure? Discuss at least one of the three foremost approaches to valuation. Discuss the strengths and weaknesses? Should one approach be used in favor over another?
(at least 200 words)
One of the major causes of failure of an acquisition is the lack of compatibility between parent organization and acquired entity in terms of corporate culture, goals and objectives. After the acquisition, lack of synergy in terms of working together in an efficient and effective manner by developing shared corporate culture, goals and objectives leads to conflict and can lead to failure of the whole M&A process.
Many a times, acquisitions fail because the objectives or rationale for which such acquisition has been carried out is not achieved, such as synergies in terms of cost reduction or synergies in terms of ...
Discuss the major cause of acquisition failure?