Before you can determine where you want to go as a company, you have to have an understanding of where your business stands today. Who exactly are you as a company? This is easier said than done. Over time, even founders of companies can lose sight of their strategic vision and get caught up in …
Tag: Risk tolerance
Deal Changer or Deal Breaker? Assessing Risk in Due Diligence
During formal due diligence, which typically begins after signing the letter of intent, you gain access to in-depth information and begin taking a closer look at the acquisition target. Traditionally the primary purpose of this stage of the M&A is to identify significant risks that could impact the terms of the deal or put it …
5 Approaches to Risks Identified Through Due Diligence
During due diligence, you may uncover deal-changing issues, or what I like to call “red bucket items.” Identifying these risks doesn’t necessarily mean you walk away from a deal, but you will need to negotiate new terms with the seller. Among the ways to protect yourself as the buyer when you find major issues: 1. …
Know Your Risk Profile
When you think about your company’s growth, ask yourself, “What is our risk tolerance?” The answer is key to formulating your strategy. You cannot succeed with a plan for growth that pushes too far beyond the level of risk that is acceptable in your company. If you are the sole owner, the level of risk …
