Magazine article Risk Management

Due Diligence and Mergers and Acquisitions

Magazine article Risk Management

Due Diligence and Mergers and Acquisitions

Article excerpt

Mergers and acquisitions have become common in today's complex business environment. When a company becomes involved in one of these transactions, the risk manager should be able to offer vital expertise and knowledge in the due diligence process, said John F. Roskopf, senior vice president at Rollins Hudig Hall in Chicago, in Mergers and Acquisitions and Due Diligence.

Whether involved in a merger or an acquisition, risk managers must investigate an enormous array of operations to detect liabilities. The process should start with a review of the purchased company's history. "Look at the past mergers and acquisition activity of the company," said John A. Spies, assistant treasurer for Harnischfeger Industries, Inc. in Milwaukee. "Visit its plants and discuss matters with operations personnel and sales and marketing people. There may be service issues that could cause exposures later."

The risk manager then should examine all operations for first-or third-party exposures, as well as statutory liability, which has become common in the environmental area. The risk manager also must ensure that the acquired entity is in compliance with all pertinent regulations. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.