Risks of Mergers Mergers sometimes do not streng
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Mergers sometimes do not strengthen a company, but end up diluting their financial strength. This can occur more commonly if the newly formed merged company issues more stocks across the same asset base of the two companies before the merger. Mergers can also fail if the cultures between the two corporations do not mesh well, there is resistance to the restructuring of management or operating procedure, technologies are incompatible, or the workforce experiences disruption. If a merger is a difficult implementation but one company still wants to join with the other, an acquisition may occur by the stronger company purchasing the weaker one.
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