Merger Problems

As evidenced by the results of the merger mania of the 90s, many industry experts believe, as was the case in the previous decade, that as many as 80% of acquisitions do not succeed, resulting in billions of dollars invested in failure. Because the majority of acquisitions do not meet the original goals and objectives of the acquirers or other conditions change, some 40% of all businesses acquired will again be sold off within three to five years, according to available statistics.

Merger Syndrome

Failure starts with the merger syndrome. The merger syndrome is the common almost automatic reaction that most employees display when their company is acquired. The human reaction in the acquired company is usually suspicion and fear. This