Risk and Reward

If you are adding to your property portfolio, introducing the next generation of plant & equipment to your business operations or even hiring senior employees to your team, the expected returns from your investment should always outweigh the risks you are prepared to take, If you are acquiring a company, it should be no different.

Mergers & acquisitions, with their inherent uncertainties, tend to sit at the risker end of the spectrum, so before you embark on the purchase, you need to make sure you have an eye on the key commercial, legal and financial risks that could prove a threat to the success of the process.

Putting in place a plan to control them, both for during the transaction itself and in the period after the completion, will help you to avoid:-

  • the transaction process taking much longer than anticipated and becoming unnecessarily costly;
  • the deal being de-railed at the eleventh hour rendering the process worthless;
  • issues post-completion which prevent synergies being achieved;
  • excess management time being spent on the transaction and at the post-completion stage which could be better spent on the core business;
  • the business defaulting or breaching covenants on finance put in place to fund the deal; and
  • paying more for the target than it is actually worth.

If you are considering making an acquisition, our transaction service team, supported by our specialist tax team, has a wealth of experience in the M&A market. We can provide you with the financial due diligence to support your purchase, identifying the critical high risk areas of concern and resolving any issues that could derail your acquisition plans.

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