Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
Which of the following is a NOT a reason for failure of mergers and acquisitions?
Options:
Boardroom split
Synergy
High leverage
Inadequate due diligence
Correct Answer:
Synergy
Explanation:
Synergy is a reason for mergers.
Reasons for failure of merger and acquisitions: Difficulties in cultural integration• Unrealistic price paid for target • Integration difficulties• Overstated synergies • Poor business fit• Inconsistent strategy • High leverage• Inadequate due diligence • Regulatory issues• Boardroom split • Human resource issues•