M&A Risk Assessment

M&A risk assessment is a special procedure designed to identify risks during M&A deals. For example a purchaser may be interested in acquiring not just an operational business, but a certain specific assets such as: real estate, trademarks, patents, product brands etc. In some cases the only one way to to acquire such assets is to acquire the company that owns them . These cases are common in the agriculture, media, telecommunications and  real estate industries.

 

In cases such as this the value of an M&A risk assessment is to identify potential financial and tax risks associated with acquiring the company, so that these risks do not reduce the value of the underlying assets.