What is the #1 Cause of Merger Failure?
Who should be blamed when an acquisition wipes out hundreds of millions of dollars of market cap? The most frequently cited villain is “cultural incompatibility.” Joe Aberger, EVP of PRITCHETT, LP, explains that “while culture incompatibility is a plausible suspect for merger failures, it shouldn't automatically be the primary one.” Too often, it takes most of the blame while the real culprit gets off scot-free.
The webinar reveals:
- Why culture incompatibility makes a good scapegoat
- What failed marriages have in common with failed mergers
- How cultural diversity can be an asset, not a liability
- What successful deal makers do when major integration problems are anticipated
- How high premiums increase the likelihood of large shareholder losses
- Why most companies do not hire outside consultants to conduct cultural due diligence