Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Industry Risk
« Back to Glossary IndexCategory: Business Valuation
Industry risk is the level of uncertainty and potential adverse factors that are specific to a particular industry or sector. It reflects the challenges and threats that companies operating within that industry may face, influencing their overall financial performance and, consequently, their valuation. Industry risk is a critical component to consider in business valuation because different industries have varying levels of risk due to factors such as market conditions, competition, regulatory environment, technological changes, and economic trends. Evaluating industry risk helps analysts and investors assess the potential impact of external factors on a company’s ability to generate future cash flows and sustain profitability.
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