CEVAP:

There are number of reasons to explain why mergers and acquisitions fail. Starting from building a plan and going to post acquisition stage, in every phase of the process it is possible to find a reason. Poor consequences of mergers and acquisitions are linked to: “inaccurate valuations, inflated prices, poor due diligence, excessive optimism, exaggerated synergies, and failed integration” by Schweiger and Very (2003).

Among all of the reasons, problems in the post acquisition period sound unexpected. Culture clash is a widely used term to describe the failure of management in the post acquisition integration process. Bringing two different sets of fundamental values of employees in all levels and fuctions together in a context of achieving business goals can create problems. This can lead to “very damaging actions from passive resistance and the loss of good staff to sabotage” (Angwin, 2007). Geiger (2010) analyzes motives and merger rationale of machinery manufacturers in Germany.