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Industry & manufacturing / Industrial manufacturing
Risks
1. Overpayment Risk - There is a risk that the company was overpaid for the public company, leaving Dover Street Capital with significantly less value than what was initially projected.
2. Underperforming Risk - There is a chance that the company may have been purchased at an inflated price due to predictions of future performance, but the company fails to meet expectations. This could lead to a financial loss on the part of Dover Street Capital.
3. Misrepresentation Risk - There is a risk that the public company was represented in a way that was overly optimistic and not a realistic view of the company's situation or future potential. This could lead to a significantly lower return than what was expected when the purchase was made.
4. Regulatory Risk - There is a risk that regulations may be implemented or changed that could reduce the value of the public company or cause Dover Street Capital to incur more costs. This could lead to a financial loss on the part of Dover Street Capital.
5. Tax Risk - Increased taxes or new taxes may be imposed on the purchase of the public company, resulting in additional costs for Dover Street Capital.