Acquisitions often fail to provide the profits and successes anticipated because:
A) Poor initial choice by the strategic leader
B) Overestimation of the potential benefits
C) Inability to manage the larger organization effectively because problems are underestimated
D) All of the above

Question

Quizplus · Accepted Answer

All of the above factors can contribute to the failure of acquisitions. Poor initial choice by the strategic leader can result in acquiring a company that is not a good fit or does not align with the organization's goals. Overestimation of the potential benefits can lead to unrealistic expectations and disappointment when they are not met. Inability to manage the larger organization effectively because problems are underestimated can lead to difficulties in integrating the new company and achieving synergy.

Acquisitions Often Fail to Provide the Profits and Successes Anticipated