Pearson

1. Regulatory and Anti-Competition Risk: Mergers and acquisitions can present a regulatory risk if the deal violates any applicable laws or anti-competition regulations, leading to a forced divestment or expensive fines and penalties.

2. Cultural Risk: Mergers and acquisitions can be culturally challenging, resulting in failed integration and unhappy employees if the two companies' management styles and employee cultures are not properly assessed and managed.

3. Financial Risk: Any substantial merger or acquisition presents a financial risk due to the large amounts of capital and resources tied up in the deal. Any unexpected changes in the financial state of either company could lead to certain added risks, such as higher than expected transaction costs or the possible failure of the deal entirely.

4. Operational Risk: Mergers and acquisitions can present an operational risk due to the complexity of having to integrate two sets of systems and processes. This could cause delays in operations and a disruption of normal business processes.

5. Information Technology Risk: Information technology risk is important in mergers and acquisitions, as unexpected changes or incompatibilities between two organizations’ IT systems can cause problems. This could lead to problems with data security, data privacy, and operational disruptions.