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What is meant by Loss of organizational flexibility as disadvantages of a merger?

In: Computer History, Business Law, Business Finance, Mergers and Acquisitions [Edit categories]

Answer:

Incompatibility of top management

Clash of corporate cultures

Operational problems

Increased business complexity

Loss of organizational flexibility

Antitrust implications

Employees may be resistant to change

Remember, the term merger and acquisition are often used interchangeably however they mean something very different, and thus will have their own specific advantages and disadvantages. In a merger, two companies combine or we could say marry-up on a so called equal basis. In an acquisition, one company buys out the other.

Contributor:

Viper1usmc

First answer by Viper1usmc. Last edit by Faizagulshan. Contributor trust: 0 [recommend contributor ]. Question popularity: 16 [recommend question].

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