FinExpertiza Survey: 95% of companies to report higher business risks

Audit and consulting network FinExpertiza completed the survey Due Diligence, M&A Deals: Trends, Challenges, Special Aspects of Transactions with Partners From Unfriendly Countries.

Key results:

• 95% of those surveyed report higher legal and financial risks in business compared to 2022: 76% of the respondents say that risks have increased significantly, another 19% say about mildly increased risks. 5% only say that risks in business have not changed and nobody agrees that risks have decreased.
• Almost 91% of the respondents confirm that the higher risks have pushed them to rethink their business model: 43% have considerably altered their business approached, 48% say they have changed the format in a less considerable way. Only 9% report that they have not had to change the business model.
• M&A deals have become more challenging in comparison to 2022. 40% of those surveyed report that many deals have become forced: foreign companies were in a hurry to sell Russian assets whilst Russian companies - to sell foreign assets. 16% of the respondents report a reduced number of M&A transactions, another 16% fix the slowdown in the transaction terms. 12% register discounts in the M&A deals however 12% report a higher number of M&A transactions. And 4% only say that the nature of M&A deals has not changed considerably.