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Question
Spring, an American firm, recently acquired another company, Tazel Inc., in Indonesia. The high-level managers at Tazel quit because they could not cope with the domineering and straightforward approach of their American counterparts. This illustrates how acquisitions may fail because:A.managers overestimate their ability to create value from an acquisition.
B.integration of operations between the two firms takes longer than forecasted.
C.there is a clash between the cultures of the acquired and the acquiring firm.
D.an acquiring firm overpays for the assets of an acquired firm.
E.inadequate pre-acquisition screening has been done.
Answer
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