SQA Higher Business Management Practice Exam 2026 – Your All-in-One Guide to Exam Success!

Acquiring companies in unrelated markets often introduces significant complexity and challenges for the buying organization. One of the most common risks is the failure to effectively manage the new business. This typically arises because managers who have been successful in their core business may not have the necessary expertise or understanding of the new market’s dynamics, customer needs, and operational challenges.

When a company enters an unrelated market, it may struggle with integrating different corporate cultures, navigating unfamiliar regulatory environments, or aligning operational practices with those of the acquired business. Additionally, the lack of synergies between the original company and the new acquisition can lead to difficulties in achieving the expected financial benefits, ultimately increasing the risk of underperformance.

The other options highlight potential positive outcomes or areas that may not be immediate concerns when entering unrelated markets, making them less applicable within the context of identifying risks associated with such acquisitions.