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Lindenwood University

Theses/Dissertations

1989

Mergers

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Full-Text Articles in Business

Why (Most) Mergers And Acquisitions Fail: The Causes, The Effects, And How To Lessen The Risk Of Failure, Sheldon R. Chesky Jan 1989

Why (Most) Mergers And Acquisitions Fail: The Causes, The Effects, And How To Lessen The Risk Of Failure, Sheldon R. Chesky

Theses

Most mergers and acquisitions fail to meet the original goals set forth for engaging in the merger. Merger failure is the failure to meet these goals in a reasonable time frame, usually five years. As a result, most mergers and acquisitions fail.

There are several causes of merger failure which are described in detail. The most significant causes are that most corporations merge or acquire for the wrong reasons, and that they fail to do adequate strategic planning before and during the merger process . As a result, up to ninety percent of the mergers and acquisitions consummated during the …