Studies have shown that almost 70% of the mergers can destroy value instead of creating. There are a lot of potential reasons for that such as lack of synergies, lack of communication, irrelevant operations, uncooperative management etc. When a merger fails, companies might choose to analyze what went wrong and try to change it.
Are the benefits that were expected to flow from one part of the company to the other actually flowing? How can a company enjoy synergies and economies of scale from the merger? Is the management cooperative enough to allow the company enjoy the growth the merger was suppose to bring? If the company does not manage to recover and enjoy the full benefits and the value creation of the merger, it might decide to dispose or close parts of the business that are loss making or have a high cost base.