What are key risk areas in an M&A transaction?
Key risk areas in mergers and acquisitions include the following:
• Overpaying for deals;
• Current valuations;
• Insufficient operational diligence;
• Maintaining focus and strategic clarity;
• Culture assimilation challenges;
• Underestimation of amount of integration work;
• Underestimation of resources and time required for synergy; and
• Inconsistent M&A planning or execution
It is recommended to seek the help of Mergers and Acquisitions specialist to help mitigate risks and increase the likelihood of a successful transaction.