Mitigating operational risk throughout the M&A deal cycle is essential to preserving a transaction's original value and ensuring regulatory compliance. Effective risk management supports the smooth integration of operations, cultures, and systems, minimising disruptions and maintaining stakeholder confidence. Additionally, addressing these risks early helps control unforeseen costs arising from integration challenges and operational inefficiencies. 

Addressing licensing compliance and property tax from the early stages of the M&A process is an operational part of the transaction that is often overlooked but is essential in preventing setbacks in post-M&A integration. For instance, if a business fails to secure a necessary operational licence, it might have to cease certain operations, leading to revenue loss and strategic setbacks. Similarly, unforeseen increases in property taxes could strain the budget, affecting operational efficiency and financial planning. How do property taxes impact the overall valuation of the target company? What are the implications for risk mitigation in the deal structure? Should dealmakers be paying closer attention to these operational risks as they carry out due diligence? 

This webinar, organised by the Financial Times in partnership with Avalara, brought together dealmakers to explore the importance of business licensing and property tax when managing operational risk in the M&A cycle. 

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