81907
Disadvantages
of mergers and
takeovers
- less than half of all takeovers and mergers are successful
- its hard to make 2 businesses work as one
- Management styles differ between firms
- one firm may be used
one company's culture
- may not be motivated by the
style used in the other company
- one firm may be used
one company's culture
- its hard to make 2 businesses work as one
- They create bad feeling
- the firm may agree it
be taken over
- sometimes the
takeover bid is
hostile and
unpopular
- the firm may agree it
be taken over
- They often lead to cost-cutting.
- May make a lot
of people
redundant
- leads to tension
- leads to
uncertainty
among workers
- leads to tension
- May make a lot
of people
redundant
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