Mergers may fail to achieve the intended benefits because of the following reasons:

(i)    Non-clarity of the objectives of merger.

(ii)    Lack of understanding of the financial stake in merger, especially when a company has limited funds at its command.

(iii)    Insufficient familiarity with the business of the acquired firms.

(iv)    Casual approach towards post-merger planning, organization and control.

(v)    Inadequate study of the collective strengths and weaknesses of the merging units.

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