There are a number of risks associated with buying or selling and such risks must be well managed in order to preserve and optimise value.
Typical areas of concern include:
- Failing to transact at fair value due to lack of understanding of value or strategic options.
- Insufficient awareness or attention toward addressing key business risks or issues that can impact transaction value.
- Distraction from “business as usual” or failure to address critical business issues on a timely basis resulting in degradation in business profitability and value.
- Future trading is compromised by potentially damaging information being revealed including the loss of key staff, customer attrition or issues with key suppliers.
- Negotiation of price, timing and other terms is difficult due to lack of options or negotiability.
- Legal negotiations become costly and protracted or agreements do not adequately protect your interests.
The PKF Corporate Finance team’s experience in managing transaction risks can help you to successfully navigate the pitfalls.