Acquisition Risk Mitigation

accesso has pursued a strategy of growth through acquisitions, which can present integration challenges and bring unforeseen liabilities. The need to adjust statutory metrics for acquisition costs indicates complexity in measuring the true underlying performance post-acquisition.

Acquisitions are strategic tools for growth, but carry risks such as integration challenges, cultural conflicts, or unforeseen liabilities that could impact financial results and operations.

Identifying suitable acquisition opportunities and successfully integrating them involves uncertainty. Dechra has defined criteria for screening targets and conducts due diligence, with the Board regularly reviewing acquisition plans.

Alten's strategy includes growing through external acquisitions, which introduces risks such as the integration of companies, aligning operational practices, and potential culture clashes that could disrupt existing operations or not deliver the planned value.

Having undergone acquisitive growth, there are risks related to successfully integrating acquisitions. This includes managing post-acquisition liabilities, cultural assimilation, achieving expected synergies, and maintaining operational continuity without affecting the core foundations of Team17's strategy.

There is a risk of unsuccessful acquisition or integration efforts of new businesses, which could result in reduced profits or lead to impairment charges, thus affecting the overall financial health of the Group.

Acquisitions are normally associated with risks, such as loss of key personnel.

Potential delay or failure to complete the acquisition process can lead to significant setbacks and impact the company's strategic initiatives and financial performance.

Informa faces acquisition and integration risk as it continues to pursue a growth strategy that includes inorganic investment in targeted acquisitions. The risks associated with acquisition activity, such as those relating to integration, pricing, and performance, have naturally increased, requiring heightened management focus.

The risks associated with integrating acquisitions are present, as evidenced by the purchase of minority interests which could result in challenges related to managing and consolidating these new assets within the existing corporate structure.

The company highlights risks associated with the financial, digital, and operational integration of recently acquired companies, acknowledging the complexities and challenges of realizing cost and revenue synergies from these transactions.

The company's strategy includes acquiring businesses such as Simumak, Nexus, and Mobbeel. Integrating these companies poses risks related to cultural alignment, retaining key talent, realizing projected synergies, and unforeseen operational challenges.

Chesnara may experience failure to source acquisitions that meet their criteria, or face unexpected financial losses or value reduction from executed acquisitions. This risk is heightened due to dependence on suitable opportunities, which may dwindle due to changes in competition, market conditions, or regulatory changes influencing strategic restructuring of life companies.

The group risks potential challenges with integrating new acquisitions such as Whitelaw Twining and Acumension. While such acquisitions are intended to grow the company's capabilities, there is an inherent risk of integration issues affecting expected benefits.

Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses. The company faces risks in successfully integrating any businesses it might acquire, and these risks may be magnified by the size and number of transactions the company has executed.

The company's growth strategy involves the acquisition of assets and businesses such as Emitel, a market-leading network infrastructure owner/operator in Poland. Each acquisition presents risks related to valuation, successful integration, realization of expected synergies, and potential unforeseen liabilities.

EA's acquisitions, investments, and other strategic transactions involve significant challenges and risks, including the failure to advance its business strategy, realize anticipated benefits or synergies, or properly integrate the acquired companies.

Keywords Studios has an aggressive strategy for growth through acquisitions. However, there is a risk associated with successfully integrating these businesses to realize expected synergies, manage cultural alignment, and achieve forecasted financial results.

Akamai's acquisitions and other strategic transactions are accompanied by risks, including difficulty integrating technologies, operations and personnel, potential disruptions to its ongoing business, diversion of financial and business resources, and exposure to cybersecurity risks and costs associated with remediating those risks in connection with the acquisition of IT systems.

The company faces risks associated with the integration of new acquisitions, as success depends on enhancing operational efficiency, adding value to services and increasing occupancy. Failure to achieve these anticipated benefits could lead to financial underperformance of the acquired entities.

Marlowe’s strategic growth includes entering new compliance markets through acquisitions. Potential risks include overpaying for acquisitions, integration challenges, or disruptions to core business activities.

SDI Group's strategy involves acquiring companies with high-quality businesses and niche capabilities, which carries the risk associated with ensuring successful integration and realizing expected earnings enhancements.

Acquisitions, strategic partnerships and investments involve risks such as diversion of management time, disruption of operations, overpayment, integration challenges, and potential loss of customer and employee relationships.

Acquisitions are a critical part of DKSH's strategy to access new business segments and enhance market position. The associated risks include potential difficulties in integrating new companies and achieving expected synergies.

Ericsson's strategy involves acquisitions to obtain benefits such as reduced time-to-market and increased scale, which carry risks of failing to integrate effectively, protect acquired value, or realize anticipated benefits. This could lead to significant expenses, material contingent liabilities, or impairment of goodwill.

Gateley Holdings engages in acquisitions as part of its growth strategy. These transactions introduce risks such as integration challenges, undisclosed liabilities, and potential impairment of acquired goodwill and intangible assets.

IMCD's growth strategy frequently involves acquisitions, which can come with risks such as integration challenges, unforeseen liabilities, and cultural assimilation of acquired entities.

Marqeta's strategic acquisitions and investments may fail to achieve the expected benefits, and the company may be unable to successfully integrate acquired businesses and technology. The identification, pursuit, and integration of potential transactions may divert management's attention and entail various expenses.

The company undertakes acquisitions to foster growth. These acquisitions carry inherent risks related to the return on investment and the successful integration of the acquired entities into Bloomsbury's existing operations.

The risks associated with strategic acquisitions and investments, including the difficulty of integrating solutions, operations, and personnel, inheriting liabilities, failure to realize anticipated revenue and cost projections, and diversion of management's time and attention.

In pursuing growth, GB Group may make strategic acquisitions. Risks related to the integration of acquired companies include unanticipated costs, cultural clashes, loss of key employees, customer attrition, and challenges in integrating technology platforms and databases.

Hexagon's growth strategy involves strategic acquisitions, which carry risks related to the integration process, customer/supplier relations, and synergy realization. The company mitigates these risks through thorough due diligence and established integration procedures.

Hexagon's growth strategy involves pursuing strategic acquisitions, which entail risks such as the acquired entities' relations with customers, suppliers and key personnel being negatively affected, and the integration process proving more costly or time-consuming than estimated.

JTC faces risks associated with integration and realization of benefits from acquisitions such as South Dakota Trust Company (SDTC). These risks can affect future revenue streams and the achievement of synergy targets, which are crucial for the expansion in strategic markets like the US.

The company has made several acquisitions, which carry risks related to the integration of the acquired businesses, including amortization of acquired intangibles, deemed remuneration, and other acquisition-related charges. Source: Quarterly Report, H1 2023, page 30 Section 2, Quarterly Report, H2 2023, page 34 Section 2

Amplifon's growth strategy includes bolt-on acquisitions. However, integrating these new assets carries risks such as cultural clashes, operational disruptions, and unforeseen liabilities, which could affect financial performance.

The Group has undertaken strategic acquisitions to enhance growth. However, the challenges associated with integrating new businesses, achieving synergies, and managing potential additional earn-out payments could pose a financial risk.

Strategic acquisitions are part of Lam Research's growth strategy, but these efforts come with the risk of unforeseen costs and difficulties. Failure to successfully integrate acquired businesses, products, or technologies could impair financial performance.

Risks related to successful integration of an acquisition include the ability to integrate information technology and other systems, issues not discovered in due diligence, customer response, diversion of management's attention, and loss of key employees. Missteps or delays in integrating acquisitions could materially adversely affect ON Semiconductor's results of operations and financial condition.

Although acquisitions like Polyplus are intended to bolster sales revenue development, the integration of newly acquired companies brings risks associated with aligning business processes, cultures, and achieving projected benefits.

The Group faces risks related to its merger and acquisition activities, including the ability to successfully integrate acquired businesses, achieve expected synergies, and manage the associated costs and risks.

Acquisition and disposal activity may dilute the company's adjusted EBITDA margin. The timing and amount of any future acquisitions or dispositions could also impact the company's financial performance.

Volution has been actively acquiring companies to drive growth. Risks connected with these activities include the integration of new businesses, achieving expected synergies, and managing contingent considerations that can impact financial outcomes.

ACCIONA employs new contractual models such as alliances and collaborative contracts, as well as a selective approach to clients and project profiles, to favor technically complex contracts with fewer competitors and lower client price sensitivity.

Allegion's long-term growth strategies include the acquisition of businesses or product lines, which could be unsuccessful, consume significant resources, or increase Allegion's exposure to cybersecurity, data privacy, or other regulatory risks. The successful integration of acquired businesses is critical to achieving the anticipated strategic and financial benefits, which may not be realized. This risk is further described in the 2023 Annual Report, pages 20-21 Sections 1-3.

Operational risks may arise from the acquisition and integration of businesses like Precise ITC, Open5, and Binus Labs. While these acquisitions aim to accelerate Alphawave IP Group's growth, the assimilation of different business cultures, systems, and processes could encounter challenges that may impact the effectiveness and efficiencies of operations.

The company is continually adapting to various risks including global economic uncertainties, industry consolidation, and lengthening sales cycles, aiming to protect demand for its products and services, and to adequately decrease costs and expenses as necessary.

The Group's increasing ambition in the scale of its acquisition program and its ability to source, satisfactorily acquire and integrate suitable targets poses a strategic risk to the business.

Risks related to past and future business acquisitions, including their integration with Coupa's existing business model, operations and culture.

IDOX faces risks related to the integration of acquired companies which could impact operational efficiencies and expected synergies.

As Marlowe undertakes acquisitions, integrating these businesses is essential for achieving cost and revenue efficiencies. However, integration is complex and carries risks, such as misalignment of operations, culture clashes, or failure to realize expected synergies.

Next 15 Group plc actively pursues growth through strategic acquisitions, such as Engine Acquisition Limited in March 2022. Each acquisition presents risks associated with integration, culture alignment, and realization of expected synergies. Failed integrations can adversely affect performance and disrupt business operations.

Risks stem from the integration of acquisitions such as Ordina and CS Group, which may encounter issues in harmonizing operations, corporate cultures, and realizing expected synergies.

The company's business strategy includes acquisitions to expand into new markets and enhance its position in existing markets. However, the company may not be able to successfully identify suitable candidates, negotiate appropriate terms, obtain financing, complete proposed acquisitions, or integrate acquired businesses, which could adversely affect the company's performance.

The acquisitions and strategic investments, such as in Swedencare AB or partnerships in China, require effective integration. There's a risk that these business ventures may not yield expected synergies or performance, and could result in impairment losses to investments.

Risks related to mergers, acquisitions, and divestments could impact financial results, as these activities involve various inherent uncertainties and integration challenges.

Risks associated with acquisitions and disposals, such as the creation of a joint venture in Australia and New Zealand, can lead to negative impacts on financials due to changes in the scope of consolidation.

Blackbaud's growth strategy involves acquiring other companies, which carries risks such as the failure to realize anticipated returns, difficulties in integrating the acquired business, and unexpected costs. The company's past acquisitions, including the acquisition of EVERFI, have resulted in challenges and delays in realizing the expected benefits.

Kier Group's strategy includes considering value accretive acquisitions in its core markets. These acquisitions are seen as opportunities to accelerate their medium-term value creation plan but also carry the risk of integration challenges, culture alignment, and the potential to adversely affect the Group's financial position if not executed well.

La Francaise Des Jeux has been actively pursuing an acquisition strategy, including the recent acquisitions of ZEturf and PLI. The successful integration of these acquisitions, both operationally and financially, is critical to the company's ability to realize the expected synergies and benefits from these transactions.

There are risks related to the business case delivery and efficient administrative integration of acquisitions made by Sandvik. The company has an M&A Tracker/review process and score cards as well as integration follow-up processes to manage these risks.

The company faces risks related to its mergers and acquisitions strategy, including the success in performing due diligence, valuing, and integrating acquired businesses, as well as the potential disruption that may result from such transactions.

Uncertainties involved in the integration of acquisitions or new developments pose a significant business risk. Poor integration can lead to inefficiencies and inability to realize anticipated benefits.

The acquisition by SPS Commerce presents potential integration risks, including aligning corporate cultures, consolidating operations, and retaining customers. Successfully managing these risks is crucial to realizing the expected benefits of the acquisition.

Acquisitions such as the takeover of Clough's assets require careful integration. Risks include potential cultural clashes, systems integration, realization of expected synergies, and retention of key talent.

CBRE's growth has benefited significantly from acquisitions, and it may continue to pursue acquisition opportunities. However, the integration of acquired businesses can be challenging and may result in the diversion of management's attention, the potential loss of key employees or clients, and the failure to achieve the anticipated benefits of the acquisitions.

DCC's growth strategy includes acquiring companies such as Medi‐Globe and PVO International. While these acquisitions present opportunities for market expansion and synergy realization, they also involve risks related to integration, culture alignment, and realizing the expected value from these strategic investments.

Fully integrating an acquired company may take significant time and resources. SPS may be subject to liabilities from the acquired company's past or present operations, and they may not be able to achieve anticipated synergies or financial results post-acquisition.

Select Medical Corporation faces risks from acquisitions, including difficulties in integrating acquired operations, technologies, and personnel, which could divert resources and make it more difficult to achieve operating and strategic objectives. Acquisitions could also result in impairment charges and expose the company to unforeseen liabilities.

Verra Mobility's inability to successfully implement its acquisition strategy or integrate acquisitions could have a material adverse effect on its business. Integrating acquired businesses can be difficult and distracting, leading to significant time and resource commitments and additional costs.

Autoliv faces risks in connection with acquisitions, joint ventures, partnerships, and other strategic transactions, including difficulties in integrating acquired technologies, products, operations, services, and personnel, diversion of management's attention, assumption of contingent liabilities, and potential adverse financial impacts.

In the consumer publishing segment, acquiring titles involves assessing their commercial viability, which is uncertain. The failure to accurately gauge the market demand can lead to financial losses.

CorVel's acquisition of other businesses may result in significant increases in intangible assets and goodwill. The company regularly evaluates whether events and circumstances have occurred indicating that any portion of its intangible assets and goodwill may not be recoverable, which could require the company to reduce the carrying value of these assets.

Old Mutual's strategic acquisitions, like that of Genric Insurance Company Limited, introduce operational risks, including the integration of new businesses, realising synergies, and managing the risk associated with diversification into new insurance products and services.

The risk that QinetiQ's M&A strategy does not achieve the maximum benefits is significant. The integration and synergy realisation with businesses like Avantus in the US are critical for ensuring disruptive growth in the defense and intelligence sector, which, if not managed well, could affect strategic and financial returns.

Quanta's inability to successfully execute its acquisition strategy may adversely impact its growth. The success of Quanta's acquisition strategy depends on its ability to successfully integrate the operations of acquired businesses and realize the anticipated benefits from the acquired businesses.

Quanta recognizes that acquiring companies with unsophisticated security measures can expose the company to significant cybersecurity, operational, and financial risks until they are fully integrated into Quanta's information systems. The increased use of remote working arrangements has also increased the company's exposure to possible attacks.

The risk of not realizing the full value of acquired companies through insufficient integration of systems, personnel, business culture and ethics, and data transfer. Sinch addresses these risks by applying a systematic approach to the entire acquisition and integration process.

Operational risks are associated with Ströer's acquisition strategies, such as integrating additional call centers into the company's dialogue marketing business. These moves require effective management to ensure they contribute to the company's growth without causing disruptions.

TMT Acquisition may face risks related to supply chain interruptions such as delays, increased costs, or inability to meet customer demands, potentially affecting its market position and financial performance.

Financial risks include credit risk, liquidity risk, and investment risks that can impact the company's capital and operations. Unfavorable credit conditions or poor investment performance can have a detrimental effect on TMT Acquisition's financial health.

Wolters Kluwer is aware of various operational and financial risks potentially affecting its results and future progress. They are mindful of factors like economic conditions, market behavior, technological developments, and regulatory changes, indicating a strategic priority for managing and mitigating these risks.

The company is cognizant of technology risks, as shown by their scenario planning for potential IT issues with key software suppliers that might impact service and reputation. In such events, the company plans to incur costs in development and licensing to upgrade or replace key platform components.

Afentra has completed significant transactions, such as the INA and Azule Acquisitions, to increase their equity interest in Blocks 3/05 and 3/05A. The strategic and commercial benefits are considerable, however, the complexity of integrating these assets and aligning interests among partners carries inherent risks.

Allison Transmission's growth strategy involves selective acquisitions and partnerships, which carry risks of failed integration, unexpected costs, and inability to achieve expected benefits, which could harm its business and financial performance.

The Group's business model relies on the ability to acquire new vehicles at competitive prices and dispose of used ones at optimum residual values. Any factors that negatively affect vehicle supply or residual values can have a significant financial impact on the company.

Risks in daily operations include successfully integrating acquisitions such as Atkinson McLeod, maintaining quality service to protect the company's reputation and brand, and managing the internal control system effectively in a changing environment.

Greencore aims to mitigate risks in technology by updating its enterprise risk management framework, which includes developing and deploying a new Group ERM policy, enhanced governance arrangements, and training for senior management.

The company faces risks associated with contract management, including the potential for contracts to be operated in ways detrimental to the company or for defaults by the company, its subsidiaries, or their counterparties.

Risks arising from the integration of new acquisitions, such as Synaffix B.V., into Lonza’s operations can impact performance and require additional capital for achievement of sales-related milestones.

The company faces attrition risks that can be influenced by factors like product fit, service levels, and return on investment realization. There's a noted increase in 'avoidable' attrition which could lead to loss of customers and revenue if not adequately addressed.

Risk identification and monitoring, both financial and non-financial, are crucial tasks, with the Board actively assessing the full range of risks at local and Group levels, implementing appropriate strategies to address them.

As TMT Acquisition relies on digital systems to conduct operations, there is a risk of cyber-attacks that could lead to data breaches, unauthorized access to sensitive information, and disruption to business operations.

The integrations of acquired platforms such as Robeco's online investment platform and the intended acquisition of Belgian investment adviser Accuro pose risks related to synergies, client retention, and one-off costs.

The company is implementing a de-risking strategy for major contracts to ensure a good level of profitability. There are risks in contract execution and unforeseen challenges that could potentially impact profitability despite such measures.

The company has demonstrated strong growth through acquisitions and organic expansion. Integrating acquisitions while maintaining service quality and cost efficiency presents operational challenges that could impact the company's financial performance if not managed effectively.

Atlas Copco Group has the ambition to grow all its business areas, primarily through organic growth, supplemented by selected acquisitions. The integration of acquired businesses is a difficult process and it is not certain that every integration will be successful. Therefore, costs related to acquisitions can be higher and/or synergies can take longer to materialize than anticipated.

Lithia Motors' growth strategy relies heavily on acquisitions, which brings risks such as failing to identify suitable targets, assimilate operations, achieve expected performance, and maintain relationships with key personnel, manufacturers, and customers.

Trimble's strategy of acquiring and divesting businesses carries risks, including the potential inability to successfully integrate acquired operations, realize expected synergies, or manage the costs and disruptions associated with divestitures, which could harm its business, financial condition, and results of operations.

Vertex faces risks in connection with existing and future acquisitions, collaborations, and other strategic transactions, including the failure to successfully develop and commercialize acquired products or technologies, difficulties in integrating the acquired business, and exposure to litigation or other claims related to the transaction.