Series 79: Identifying Potential Hurdles

Identifying Potential Hurdles

In addition to looking for benefits to the transaction, the buy-side advisor should also consider what potential corporate, structural, or legal hurdles might exist. Such hurdles could include regulatory issues or a mismatch of corporate cultures, for example. One potential impediment that a buy-side advisor should always try to identify is the existence of anti-takeover defenses.

Finding out that a seller has anti-takeover defenses in place can ruin a buy-side advisor’s day. One