More than one-half of all mergers fail or do not live up to financial expectations
Indicate whether the statement is true or false
TRUE
Explanation: More than one-half of mergers do not succeed in achieving greater market value. The reasons for this include the fact that top executives take their eyes off the day-to-day business while focusing on the merger. Revenues and profits ultimately suffer because day-to-day activities are neglected. Conflicts may also arise due to divided loyalties, hidden agendas, or power struggles within the newly combined management team. Employees may be nervous because most mergers result in the elimination of jobs, and more turnover may be created.
You might also like to view...
The markets of Central and Eastern Europe present interesting opportunities and offer attractive opportunities for low-cost manufacturing due to:
A) their location being close to the sea. B) the cultural similarities. C) wage rates being lower than in Spain, Portugal and Greece. D) strict laws and regulations. E) prohibitive tariffs and export restrictions.
Benchmarking is always externally focused
Indicate whether the statement is true or false