Global M&A: Five Factors Midmarket Companies Must Consider Before Making an International Deal
International mergers and acquisitions (M&A) are high-reward, high-risk propositions. While opening up access to vast new markets and bringing rapid growth to companies, they can also increase companies’ exposure to many types of risk. Executives at a company looking to complete an international deal can increase the chance of success by recognizing and understanding the regulatory, political, cultural, financial, legal, and marketing challenges specific to the country where the target company is located.
Pinpointing the right international company to target for a merger or acquisition is a painstaking and difficult undertaking. And once a target is determined, pursuing and closing the deal is an elaborate process fraught with potential hazards, including serious complications due to a range of cross-border issues. Detailed here are five significant types of factors that midmarket companies must take into careful consideration when pursuing an international merger or acquisition.