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Why Mergers and Acquisitions Fail?

  • Vinod Kumar
  • Priti Sharma
Chapter

Abstract

This chapter tries to identify and inculcate few of the major reasons for failures of M&As. The probable reasons for failure have been extensively covered with various examples of the deals which failed to create value like Tata Corus, eBay Skype, etc. An extensive reasoning on the failures which may arise right from initiation phase like poor communication, valuation issues, payment issues, due diligence, etc. are explained. Also the post-integration phase issues like integration failure, cultural clashes, etc. have been discussed in brief. Toward the end of the chapter, success mantra for M&A is explained in brief. If the combining entities follow these guidelines, the probability of creation of a value-enhancing combination goes up.

Key Words

Mergers and Acquisitions Failure Poor integration Valuation Dubious reasons Owner’s involvement Cultural issues 

Copyright information

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Vinod Kumar
    • 1
  • Priti Sharma
    • 2
  1. 1.SGND Khalsa CollegeUniversity of DelhiNew DelhiIndia
  2. 2.Institute of Management Technology, Centre for Distance LearningGhaziabadIndia

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