Marketing and Operational Factors That Affect the Success of Mergers and Acquisitions

Most hospital mergers are contemplated in order to increase a competitive advantage. Managers hope that market share will increase for the new organization in comparison to the shares pre­ viously held. Because increases in market share improve an orga­ nization’s competitive position, a snowball effect can occur. How­ ever, market share alone does not mandate success. Without sound management, a merger has a high probability of failure.