Failure of mergers and takeovers
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Failure of mergers and takeovers
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Poor strategic plan will result in slow or failed integration. Integration should be planned well in advance and not be done on a "make up as you go along"basis.
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Poor man management and lack of respect for staff. This will be extremelyde-motivating for
staff and could result in loss of key staff
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Incompatible IT systems. This could lead to lost orders, invoicing problems, despatching problems etc. All resulting in loss of goodwill with suppliers, customers and de-motivating for staff.Eventually resulting in loss revenues and decline in profits.
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Lack of knowledge of acquired company's products and market. Again this will lead to loss of revenue and goodwill.
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Cultural differences. Working ethos can be different particularly for overseas subsidiaries, where language could also be a barrier.
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Lack of control and feedback. Inadequate management systems will result in a lack of corrective actions being taken.
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