U1 What Are The Reason For Failure Merger

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Topic: What are the reason for failure merger?

Many alliances end in failure due to differences in personality clashes and


cultural conflict. (2) Obviously, it is important for firm executives to know the
reasons behind the merger's failure.(3) The first mistake that many businesses
make is being over-confident when making MA activities. (4) In fact, they are so
eager to merge with any MA activities that they forget the financial risks of each
one. (5) Another reason is that if partners have different goals or different points
of view in doing business, then will occur cultural conflict, personality clashes,
poor working relationships, and no future benefit. (6) As you can see in real life,
Disney & Miramax, this alliance was failed because Disney focuses on family
movies while Miramax targets controversial and serious movies. (7) In conclusion,
there are 2 main reasons that why almost all companies that form alliances fail.

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