CHAPTER 1

Introduction

Merger and acquisition failures are established phenomena. The failure rates vary according to some analysts, scholars, and researchers. Statistics show that approximately 50 percent of all mergers and acquisitions fail to achieve the intended results (William 2005). The failure rate of merged firms in creating value and meeting their desired financial or strategic objectives is even higher. Marks and Mirvis (2010) point out that roughly 70 to 75 percent of corporate partnerships failed, whereas the failure rate as per Christensen et al. (2011) is 80 to 90 percent. Therefore, statistically every other merger is doomed for failure.

Consistent merger failures have provided scholars with abundance of data and different theories ...

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