Business expansion also involves going to acquire a business segment with similar product or services. It may be appropriate to join on sharing basis with respect to capital and company`s asset. Acquisition and mergers are subject to many conditions in corporate sector.
Pre-Requisites for successful mergers and acquisitions are:
Synergy and making new work climate, teamwork and culture is result of change management.
Unfortunately, if merger and acquisitions are not carefully planned and implemented, result comes in form of business collapse sometimes. Though Mergers and Acquisitions are done to achieve some benefits like synergistic gains that results from more Skilled management, economies of scale, more return on capital employed, using market factors for benefits, the use of complementary resources and many more, it often fails. At stage of negotiation and implementation, stage mergers and acquisitions may fail because of the poor leadership structure. Mismatch of cultures between the two, the management composition, and other sensitive issues may fuels to the failure of mergers and acquisitions.What are those factors that act as hindrance to successful mergers and acquisitions?