How well the directors steer the business between the demands of shareholders and the wider interests of stakeholders. If the news media run stories about excessive pay at a business, or poor ethical standards, the finger will be pointed at the firm’s corporate governance.
The realisation that the established cultures within two organisations are incompatible. Perhaps one business is methodical and cautious, the other entrepreneurial and daring. Occasionally mismatches are recognised in advance, causing a merger to be cancelled. More often the mismatch emerges after the takeover/merger has gone through.
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