The merger and acquisition market has remained active
over the last several years, despite the challenging times in which
we all do business, Admittedly, a percentage of transactions, that
might have completed in easier times, have not done so. Tim Sadka,
Head of our Corporate Team, considers the issues
further.
Such failures are often the result of (1) debt finance not being
available or on terms that are not commercially attractive to the
participants and/or (2) businesses having risk profiles and
practices which do not meet the higher standards of due diligence
which have evolved in recent times.
The risks of transactions falling over at the due diligence stage
has led to increased client interest in reviewing activities well
in advance of a transaction and we are increasingly involved in
pre-exit grooming exercises, working with clients and other
advisors, to ensure all risks are identified and managed in advance
of an exit process.
