Reply To: Why management thinks they will beat the M&A odds?

#109664

Melanie Edwards
Participant

Probably because to get to a position where one can make these decisions, one needs a healthy self confidence, beating the odds is part of the day job.

On a serious note, a lot of failure are down to lack of homework. Buying for geographical expansion or purely to be the “biggest” usually fail, yet a lot of acquisitions focus on this. Sometimes, there is a pride element. The DD shows the acquisition shouldn’t go ahead, yet, decision makers do not want to go back on their words / announcement to the Board and therefore will try to see it through.

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