By Nona Patronite, Managing Director, Investigative Services
Mergers and acquisitions often focus on financials and projections, but substantial risks can easily be buried beneath a deal’s surface. A deal that looks solid on paper can quickly unravel when these issues come to light.
Here are just three items that may get overlooked:
- Undisclosed Liabilities – Hidden lawsuits, tax liens, and regulatory violations can create post-closing financial and reputational exposure. A clean legal history today doesn’t mean there isn’t pending or undisclosed risks.
- Executive Red Flags – Leadership integrity is just as critical as financial stability. Past fraud, SEC sanctions, or undisclosed conflicts of interest can indicate a culture of misconduct that isn’t likely to change post-acquisition.
- Asset Verification Issues – Fake ownership claims and encumbered assets can misrepresent a company’s actual value. Without thorough verification, buyers may inherit problems they never anticipated.
Traditional due diligence can fail to uncover these risks. Comprehensive investigative diligence provides a deeper layer of protection, ensuring buyers are making informed decisions based on full transparency.
Before closing any deal, ask yourself: What don’t I know? The answer could be the difference between a strategic success and a costly mistake.
LCG Advisors is a leading financial consulting and transaction advisory firm specializing in mergers & acquisitions and other select advisory services. We offer a wide breadth of services, providing clients with one comprehensive source for high-level advisory expertise.
For assistance with background checks and all other investigative due diligence needs, please contact Nona Patronite, [email protected]. Our experts are ready to conduct the investigations you need to assist in making the best business decisions.