Investor Presentaiton
Acquisition Risks
Reliance on information provided
There is a risk that information provided by the Seller (including financial information) was incomplete, inaccurate, out of date or unreliable and there is no assurance that the due diligence was conclusive or identified
all material issues in relation to LDD Business.
If any of the data or information provided to and relied upon by Bega in its due diligence process and its preparation of this presentation proves to be incomplete, inaccurate or misleading, there is a risk that the
actual financial position and performance of the LDD Business and Bega may be materially different to the financial position and performance expected by Bega and reflected in this presentation
Analysis of acquisition opportunity
It is possible that the financial, operational, business and/or other analysis undertaken by Bega in relation to the LDD Business or the acquisition of the Sale Shares as well as its best estimates and forecasts, are
inaccurate or are not realised in due course.
To the extent that actual results achieved by the LDD Business are weaker than those assumed by Bega's analysis and forecasts, there is a risk that this may have an adverse impact on the financial position and
financial performance of Bega and its share price.
Estimates of certain management, selling, general and administrative costs of running the LDD Business were made by Bega. There is a risk that Bega's estimates of these costs may be inaccurate which may have an
adverse impact on the financial position and performance of Bega.
Customer and supplier relationships
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There is a risk that as a result of the acquisition and operation of the LDD Business, contractual relationships with customers may result in deceased sales volumes and increased costs which could materially affect the
financial performance of Bega.
A number of the LDD Business supplier and customer contracts are due for renewal or renegotiation in the next 24 months. There is a risk that Bega may not be able to successfully negotiate the renewal of these
contracts, or that contracts are renewed on less favourable terms. This could materially affect the financial performance of Bega.
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