Why are acquisitions such a popular method of strategic development despite the evidence that they are often unsuccessful?

The reason for immediate objective of an acquisition is self - evidently growth and expansion of the acquirer's assets, sales and market share. For example, the aim of integration of Salora and Luxor by Nokia was to arrange production in a more optimal way and to utilise more effectively all the possibilities of synergy, including integrating production plants in a total product planning and production system BMW thought about acquiring Rover as it was to …

…process - preparation, negotiation and post- acquisition integration - must be understood as interrelated process. Honesty, sensitivity, competence and willingness to share with the target staff the benefits of acquisitions are the important contributors to success of acquisitions. Also the need for competent management should be highlighted with the focus on the human resource audit as whatever, the merits of an acquisition on financial and business criteria, it is people who make it all happen.