Culture clash: The risks of mergers

Jay C

Banned
First, the Merger..then, the culture clash.
One definition of an optimist: a person who persists in the face of near-certain failure. Any company considering a merger or an acquisition needs a hefty dose of optimism, because at least 60 percent of all mergers fail

When America Online and Time Warner announced that they were joining forces, a round of mega-merger euphoria swept the stock markets with dealers looking forward to a lucrative future dominated by the internet
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However, in the days that followed the share prices of the two companies dropped back as analysts asked how well the merger would work.
failed

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All too many mergers undertaken with the highest of hopes have failed to deliver. Too often culture conflicts and personality clashes hamper the new company's performance.

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When they don't work, the two key management groups do not
blend well together

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Culture Clash on Horizon for East-Meets-West Merger


looks like the clashing has come to a point where the proud, the mighty, the profitable culture will be hit by the struggling, cash strapped, debt ridden evil empire

and drag everything down
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one can only hope the vote is yes
and please mommy don't whack me anymore​
 

SuperCourse

I live Here
It takes a very talented CEO to successfully pull off the integration of an aquisition. Unfortunately YRC doesn't have a talented CEO. In fact most CEO's are not all they think they are. I can only think of 2 off the top of my head that are capable and successful with aquisitions. Jack Welsh when he was at GE and Larry Ellison at Oracle.
 
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