Question: What Are The Challenges Which Are Likely To Occur With A Potential M&A?

Which type of challenge is the hardest to overcome in a merger?

Despite best-laid plans and executive oversight, human factors present the greatest risk and sales-force integration is the toughest merger issue to overcome..

What are 3 disadvantages of mergers and takeovers?

Disadvantages of a MergerRaises prices of products or services. A merger results in reduced competition and a larger market share. … Creates gaps in communication. The companies that have agreed to merge may have different cultures. … Creates unemployment. … Prevents economies of scale.

What are 5 possible reasons for mergers?

The most common motives for mergers include the following:Value creation. Two companies may undertake a merger to increase the wealth of their shareholders. … Diversification. … Acquisition of assets. … Increase in financial capacity. … Tax purposes. … Incentives for managers.

What are the challenges of merger and acquisition?

5 Key Challenges HR Faces during a Merger or AcquisitionIdentifying and communicating the reasons for the M&A to employees. … Forming an M&A team and choosing and coaching an M&A leader. … Assessing the corporate cultures. … Deciding who stays and who goes. … Comparing benefits, compensation and union contracts and deciding on HR policies and practices.