During mergers and acquisitions, risk must be assessed _____.
A) post integration
B) after making the deal
C) before making the deal
D) during integration

Question

Quizplus · Accepted Answer

Risk assessment must be done before making the deal in order to identify potential threats that may jeopardize the success of the acquisition. This enables the acquiring company to make an informed decision on whether or not to proceed with the deal and develop a strategy to mitigate risks. Post-integration risk assessment is important to understand whether the identified risks have been mitigated successfully, and to identify new risks that may have arisen after the acquisition. However, this cannot replace the importance of conducting risk assessment prior to making a deal.

During Mergers and Acquisitions, Risk Must Be Assessed _____