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Improving The M&A Success Rate: Identity May Be The Key, Carol M. Sanchez, Mahendra Joshi, Paul Mudde Jan 2020

Improving The M&A Success Rate: Identity May Be The Key, Carol M. Sanchez, Mahendra Joshi, Paul Mudde

Peer Reviewed Articles

Every year companies spend over $4 trillion on mergers and acquisitions (M&As) in spite of the fact that between 70% to 90% of these M&As fail. Both practitioners and scholars are puzzled by these intriguing statistic and have tried to identify the causes of M&A failures. Factors such as inaccurate assessment of financial and operational synergies, lack of clarity in the execution of the integration process, negotiation errors, lack of backup plans, and cultural issues are only a few of the long list of reasons that may lead to such high rate of failure. Evidently, some of these factors have …