Case study: Providing Risk Insights for a Strategic Merger

A Czech company was preparing for a strategic merger with a smaller industry peer. As part of its pre-transaction assessment, the client sought deeper visibility into potential operational and reputational risks related to the target’s supply chain, internal operations, and leadership.

Client

A Czech mid-sized company evaluating a domestic merger opportunity.

Task

Identify and assess risks connected to the supply chain, operational practices, and management of the acquisition target. The goal was to inform negotiations and reduce post-merger risk exposure.

Solution

Supply chain and operational due diligence

We conducted open-source research across Central and Eastern Europe, focusing on companies and entities linked to the target’s supply chain. Our analysis covered business history, financial health, legal disputes, and reputational concerns.

Stakeholder engagement

To complement the data analysis, we carried out discreet interviews with stakeholders and industry professionals familiar with the target company. This allowed us to gather qualitative insights regarding the company’s performance, leadership, and standing within the sector.

Impact

Our research uncovered several high-risk suppliers in the target company’s supply chain and raised performance and reputational concerns regarding one senior executive.

The client used these findings to strengthen their position during M&A negotiations and successfully pushed for changes to the deal structure, including leadership adjustments and contractual safeguards – resulting in a more favourable outcome.

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