Why do Companies Continue with Mergers and Acquisitions when so many Fa

Why do Companies Continue with Mergers and Acquisitions when so many Fail?The phenomenon of mergers and acquisitions (M&As) triggers an arrayof opinions and viewpoints. Often it is a dodge that is seen as a pure(a) focusing of achieving growth. It is by no means an organic or innate(p) route to success, but has tended to be a quick and easy focusing ofincreasing an organisations size and power. However although in that location havebeen waves of popularity and success since its trigger in the1960s it has also suffered criticism due to the number of failures ithas accounted for. contempt the strong suggestion that this strategyhas been the architect for many an organisations downfall there stillremains a propensity in the current byplay environment for managersto adopt it. Throughout this essay I am exit to examine some of theareas that explain M&As excitableness and attempt to discover whymanagers are persevering with the strategy when it is patentlyflawed.Over the last few decades it has become increasing apparent that the resultant role of mergers and acquisitions is not as beneficial as oncethought. When the growth strategy was pioneered in the middle part ofthe nineteen hundreds it was looked upon as a way of creating anempire across different sectors and countries. Many experiencedmanagers were sucked into the strategy, only having look for theapparent synergistical and positive affects of M&As. Although overthe following days there has been many success stories concerningM&As, when the big give is examined it displays a more ugly sideof the phenomenon. Hodge (1998) discovered that in the go-go 80s,37% of mergers outperformed the average shareholder return in thatperiod in the fi... ...nal, capitulation Customer text-section 2, topic 11.- Kieran et al (1994) Planning the deals that generate value and bring advantage, Mergers and Acquisitions, March-April Custom text, topic 12. daybooks- Doitte S & Smith G (1998). The dawn after (avoid ing mistakes in acquisitions and mergers). Winter v63 i2 p32(8).- Davenport, T (1998). The Integration Challenge (managing corporate mergers Management Review.- Heitner M (1998). The thorny business of merging rival firms, Mergers and Acquisitions.- Hodge, K (1998), The art of the post deal (outcomes of mergers). Management Review.- Price, A & Sloane, J (1998). world(a) Designs Tough Challenges for- Acquirers. Mergers and Acquisitions..- Whipple J & Frankel R (2000), Strategic Alliance Success Factors. The Journal of Supply Chain Management.