2BUSI 885 RESEARCH CONCEPT GUIDEApproved Problem Statement Bullet Outline from Task 11. General Problem SentenceAccording to Joshi, Sanchez, and Mudde (2020), companies spend up to $4 trillionannually on mergers and acquisitions (M&A) deals. However, between 70 and 90 percentof these acquisitions are unsuccessful, which results in potential losses of between $2.8trillion and $3.6 trillion per year.According to Galpin (2021), a comprehensive analysis of 2,500 M&A deals indicatedthat more than 60 percent destroyed shareholder value and that "human issues" need to beconsidered more. This finding suggests that more attention should be paid to "humanissues."According to Thompson and Kim's research (2020), the time it takes to finalize an M&Adeal directly indicates the likelihood that the transaction will be successful. This researchhighlights that unusually long lengths of time and delays can be indicators of severalproblems with the transaction.According to Weber, Zu Knyphausen-Aufseß, and Schweizer (2019), enhancingprocurement methodology and direction can reduce the chance's role in the process whilesimultaneously increasing the likelihood of a successful arrangement.2. Specific Problem SentenceThe specific issue that needs to be solved is the potential reasons why attempted mergersand acquisitions transactions in the US private equity sector fail, which could result in significantfinancial losses in the form of failed transaction expenses. The solution to this problem needs tobe found as soon as possible.
