Recommendations to mitigate risks

Risks involved - Financial risk (debt financing), Diligence related risk, Change management/cultural
integration, lack of experience in M&A

• Financial Risk: Once the company’s revenue increases, they can issue more shares; Infuse capital in
Sylvania; integrate and centralize distribution channels of two companies- this will help in reducing
working capital; Offshoring of operations to reduce cost gradually

• Operation Management: Phase wise integration of company by doing test run of different products in
different country
• Cultural Management: Have employee exchange program, cultural sensitivity training
• Lack of experience in M&A: Hire third party M&A consultants with expertise in European and Latin
American markets
• Diligence: Corporate restructuring by experts, industry and competition benchmarking