There are a myriad of potential risks and challenges to transacting an acquisition, whether you’re the buyer or the seller. Financial risks include the possibility that the target company’s financials may not be accurate or that the potential buyer may incur financial liabilities by purchasing the target company. Legal risks include pending litigation or legal liabilities that the buyer might inherit. There might also be legal reasons that the company cannot be sold to or operated by the buyer. Operational risks include the chance that the company won’t be able to continue to operate in the same way with similar economics as before. It’s important to discuss key financial, operational, and legal risks specific to each transaction with your M&A expert to find out how they can help you quantify, qualify, negotiate, and manage these risks.