Question
Need help in rewriting this in my own words Risk Identification: One potential, unforeseen risk that could occur is overall lack of communication and transparency.
Need help in rewriting this in my own words
Risk Identification:
One potential, unforeseen risk that could occur is overall lack of communication and
transparency. Something that could affect this is technology, communication is key when
negotiating, and it shouldn't just end after that stage, communication should increase even after a
deal has been struck. More importantly, everyone needs to be involved when a deal has been
signed, keeping employees updated with what is going on is very important, we are trying to
showcase that we are a a good deal, we have what it takes to enter this field and we can help
expand this new company that is acquiring us. Below is a graphic that illustrates how lack of
transparency and communication can effect this merger and acquisition if we aren't open and
honest about what is happening, we don't want our employees in the dark on this.
Another risk that I have identified is unforeseen market disruptions. Seeing how the
ongoing pandemic has effected each market is something that can prove that this could be a
disruption. Anything could cause delays in the merger and acquisition market, and those delays could have significant impacts on the economy. Taking a look at past market disruptions can help us better prepare for something big to happen again, doing this can also help us relearn lessons that were taught during that time, having sound decision making skills will also help navigate through something like that.
Risk Evaluation
Something like lack of communication can happen at anytime, not keeping employees in
the loop of what's going on can be disastrous. As I mentioned before low morale, low
productivity and employee turnover can make us look bad in the eyes of the company we are
being acquired by, discussion the M&A sooner rather than later is key, as soon as something can
be said internally it needs to be done. When leaders are engaged with employees about the M&A
can result in a smoot transition for everyone involved. The potential risk for this problem is
medium.
For unforeseen market disruptions, something like the 2008 recession can very much
happen again, the potential risk for this issue is high. Being prepared for something like that and
learning from past mistakes can save everyone a headache, "Continuous M&A study,
professional development, and discussions with other practitioners can help you navigate
unforeseen market disruptions and the impacts they can cause, which will, hopefully, mitigate
their overall negative impact on your business" (Lewis, 2022).
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