Manage risk the right way
Abstract: Risk management has become a big concern for both business buyers and sellers during the recent economic downturn. More than ever, companies pursuing an M&A transaction need to adequately account for the possibility that their deal will fall through before it’s complete or fail to meet postmerger objectives. There are many different kinds of risks, but this article shows that there are also a number of strategies buyers and sellers can take to minimize the risk of catastrophe. A sidebar looks at two ways to prevent stock market volatility from destroying a deal between public companies.