Explain how a boardroom split is a reason for failure of merger. - Vidyadip

Question

Explain how a boardroom split is a reason for failure of merger.

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Answer

When a merger is planned, evaluation of the of the boardroom and compatibility of composition the directors is crucial. Managers who are suddenly deprived of authority can react in a bitter way. Personality clashes between executives in the two companies are bound to arise. This may slow down or prevent integration of the firms.

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