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Why do most acquisitions fail to create shareholder value?

Question

Why do most acquisitions fail to create shareholder value?

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Step 1

Mergers and acquisitions generally failed to create or add value for the shareholders because of overvaluation. Merger and acquisition not only can affect financially but also the brand’s reputation can be damaged among shareholders.

Step 2

The acquisition made by the firm can only be fruitful if it knows more than what market knows and the acquiring firm can do much better with the firm’s available assets than the firm without acquisition is...

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