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Failure causes for M&A most commonly cited include:
AOverpayment, cultural mismatch and overestimation of synergy
BUnderpayment and excessive cultural alignment
CStatutory restrictions preventing any cost synergy
DTax neutrality of stock-for-stock deals
Answer & Solution
Correct answer: A. Overpayment, cultural mismatch and overestimation of synergy
1. Identify what the question asks: this concept maps to mafailurecauses (§12).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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