ERM News - Merger and Acquisition Risk Considerations for 2014
The merger boom may be around the corner. What are the key risk issues for "buy" or "sell" organizations to consider when contemplating a deal?
Credit Suisse has issued a new report about the possibility of increased merger activity in 2014. However, there are hosts of new due diligence issues to consider as part of any deal. A recent report from Clifford Chance, et.al. lists some of the risk sources and considerations involving mergers and acquisitions. Some of them include tax investigations, cartel activity and price fixing, breaches of international sanctions, cyber security attacks, corruption and cover-ups, data security breaches, and human rights breaches. For a full reading of the report, please click here.
There are merger and acquisition insurance products and services that may help. One such insurance company is ACE, which has a substantial offering of M&A products and services. There are others which offer similar and more refined products and services. Any merger and/or acquistion should include independent risk analysts as supportive team members to properly identify and measure key strategic, operational, financial, and hazard risks.