Managing M&A risks begins with understanding how the acquisition target fits into the strategic plan of your company. The four phases of M&A each possesses their own risk: --Target fit with Strategic Plan --Due Diligence --Integration --Post merger/acquisition follow-up and management
Critical Success Factor:
√ Implement a standardized approach to each of the four phases of the merger's and acquisitions process. √ Ensure the target contributes to meeting at least one of the strategic goals. √ Ensure that adequate integration support and monitoring exists. √ Establish the risk profile of the target, consider the "risk load" to the your company in light of recent and future mergers and acquisitions.