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What Causes a Merger To Fail

July 26, 1999
Related Topics: Mergers and Acquisitions, Featured Article
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Right Management Consultants did a study of 179 organizations that recently merged. They found that only 30% of respondents said their companies had succeeded in areas such as cultural integration, employee retention or communication. The study gives eight reasons why a merger can fail:

  1. Key talent leaves.
  2. Lowered overall productivity and individual performance.
  3. Incomplete or infrequent communications.
  4. Placement errors.
  5. Management denial or inattention to key workforce problems.
  6. Lack of direction during implementation.
  7. Ignoring the "culture fit."
  8. Poor management of remaining employees.

SOURCE: Right Management Consultants, Philadelphia, March 1, 1999.

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