Don’t Let Hidden Risks Impact Your New Investment

As exciting as it is to acquire a new company — whether purely as an investment or as a way to expand your existing business — every new acquisition presents new risks.

When integrating an acquired business, there are many risks to evaluate and manage to ensure that the integration is successful and the anticipated synergies and benefits of the acquired business are realized quickly.

A great deal of scrutiny goes into the transaction and valuation, but companies can be caught unaware when process integration risks turn the deal of a century into a mass of headaches and lost opportunity.

Starting off on the right foot with the right executive team, processes and staffing plans sets the stage for the success of the acquisition. If nothing else, it can minimize short term costs, an important consideration when the integration needs to be successful without exceeding the acquisition costs that have been presented to investors.

In Weaver’s Risk Insights: Acquisitions we highlight some of the key things to consider as you work through your acquisition integration journey.

Consider how you will address:

• Merging Company Identities
• Assessing Human Capital Needs
• Managing Transactional Processing Critical to Business Objectives
• Managing Technology and Physical Security
• Fraud Risk in Two Environments
• Impacts to the Strategic Governance Program
• Controls Integration and Decommissioning
• Integrating Applications and IT Infrastructure

For detailed information about considerations for integrating newly acquired entities, click here for the full insights article.

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