Which of the following is NOT a reason for the failure of an acquisition to generate the gains originally expected of it?
A) Poor post-acquisition integration
B) Overestimation of the potential gains to be derived from synergy
C) The high cost of making acquisitions
D) Lack of pre-acquisition screening
E) Overestimation of the potential costs of realizing synergies

Question

Quizplus · Accepted Answer

The failure of an acquisition to generate the expected gains is often due to factors such as poor integration, overestimation of synergy gains, high acquisition costs, and insufficient pre-acquisition screening, rather than an overestimation of the costs to realize synergies. Overestimating the costs of realizing synergies would likely lead to more cautious investment and integration planning, rather than causing the acquisition to fail in generating expected gains.

Which of the Following Is NOT a Reason for the Failure