Reasons for the failure of SME external takeovers
This article studies failed SME external takeovers. Responding to Argenti’s (1976) call, it explores the causes of Business failure that are specific to the context of takeovers. We present and analyse six bankruptcy cases, based on an analytical grid proposed by Malecot (1981). Our findings confirm that bankruptcy proceedings indeed have three principal causes: the market, debt, and management. However, we also reveal a fourth cause, “organisational culture”. The introduction of this new cause provides a less mechanical and richer perspective on business failure in such contexts. In addition, it invites us to discuss the danger relative to the “fit” between the individual and the organisation, a feature that is marginalised (or even ignored) as a cause of difficulties.