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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Investment Risk

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Category: Mergers and Acquisitions

Definition:

Investment risk in the context of mergers and acquisitions refers to the potential for financial loss or underperformance associated with the decision to invest in or acquire another company. This risk encompasses various factors that can affect the success or failure of the investment, including financial performance, market conditions, integration challenges, regularoty and legal risks, synergy realization, operational risks, strategic fit and financial structure. Investors and companies involved in mergers and acquisitions carefully assess these risks during the due diligence process to make informed decisions and implement strategies to mitigate potential challenges. Understanding and managing investment risks is crucial for achieving the desired outcomes and maximizing the value of the combined entities.

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French Translation:

Risque d'investissement