Dynamic due diligence: managing new and emerging acquisition risks

Recent well-publicised incidents of cyberattacks, breaches of whistleblower requirements, environmental, social and governance (ESG) issues, breakdowns in governance of tax risk, rapid developments in artificial intelligence (AI) and associated intellectual property (IP) issues, and an increased government focus on supply chains are demanding a more dynamic approach to M&A, both as a driver for acquisitions and as a fundamental requirement to better manage acquisition risk.

In one sense, this is not new – M&A professionals have always known that acquisition due diligence needs to be bespoke. What has changed, however, is the list of matters that can have a material impact on the value of that target post-acquisition and on the buyer's own brand.