Assertion: Boardroom split is one the main reasons for success of mergers and acquisitions.
Reasoning: An acquisition may face legal hurdles which may result in regulatory delays and increases the risk of deterioration for the business.
Reasoning: An acquisition may face legal hurdles which may result in regulatory delays and increases the risk of deterioration for the business.
Answer & explanation
Correct answer: option 4
Boardroom split is one of the reasons for failures of merger and acquisition.
Boardroom split :When a merger is planned, it is crucial to evaluate the composition of the boardroom and compatibility of the directors. Managers or directors who are suddenly deprived of authority can be particularly bitter. Specific personality clashes between executives in the two companies are also very common. This may prove to be a major problem, slowing down or preventing integration of the entities.
Boardroom split :When a merger is planned, it is crucial to evaluate the composition of the boardroom and compatibility of the directors. Managers or directors who are suddenly deprived of authority can be particularly bitter. Specific personality clashes between executives in the two companies are also very common. This may prove to be a major problem, slowing down or preventing integration of the entities.