In another article, I talk about the rate of failure of mergers and acquisitions being 91%. What I did not talk about was the primary cause of these failures. It is actually quite simple. Most of these transactions, commonly referred to as M&A, are driven by finances and financial calculations. Unfortunately that has nothing to do with the daily business of doing business for any organization. It is the people that matters, and it is a failure of recognizing the people, or culture, that cause most M&A transactions to fail. In this article, I talk about how to avoid this fatal mistake.
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