Corporates encounter pitfalls in post-merger statutory approval due to certain common errors, that need to be taken care of. Try to point out certain errors that need to be taken care of.
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2018
Corporates encounter pitfalls in post-merger statutory approval due to certain common errors, that need to be taken care of. Try to point out certain errors that need to be taken care of.
Answer & Explanation:
Some common mistakes that need to be taken care of by Corporates after post-merger are: Ego problems result in clashes that make bad situations worse; Sudden and radical changes such as relocating the company's entire production operations should be carefully considered; While the company is focussed on integration, it furnishes an ideal time for competitors to make a run on the market; If the acquired business does not belong to the area / field in which the acquiring company operates then different approaches need to be applied; A dangerous mistake is laying off crucial employees of the acquired company. It is very complicated, delicate matter and even the seller might not have accurate idea as job titles are normally misleading.
Topics: Corporate Restructuring
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