A mediation is held on a without prejudice basis. If it fails the parties still have the right to pursue other remedies. In practice, the vast majority of mediations are successful. In achieving a resolution enormous cost savings are achieved. Further, vast amounts of management time are saved and can be diverted into much more positive uses than litigating.
Mediation also holds out the possibility of preserving business relationships.
Usually the longer litigation continues the worse the relationship becomes and the parties in dispute never deal with each other again. Also, if a case goes before a Court the Judge has few options, the case is seen in black and white. A mediation can come up with a far more creative solution acceptable to both parties but which a Court could not possibly order. Almost certainly yes. There are some cases that are not suitable for mediation.