Systematic risks are often unavoidable and can quickly erode value. The current pandemic has impacted the entire economy, especially the retail and consumer goods industries.
Idiosyncratic risks are inherent risk factors to an individual business or a specific group of assets and may impact value over time. These risks are knowable and foreseeable, and investors and companies should scrutinize such risks in complex and asymmetric environments, like acquisitions and investments, in order to limit downside exposure (or the potential to suffer a decline in value) and protect capital.
In this article published in the International Trademark Association Bulletin, Rich Franciosa and Michael Herrigel review public-company disclosures concerning transactional trademark data and the idiosyncratic risks concerning transaction examples.
This article was first published by the International Trademark Association on inta.org
