Cross-border M&A transactions continue to increase every year. Annually, these transactions are valued at around $3 trillion.
As the desire for globalization grows, more companies are turning to cross-border M&A to expand their revenue and reach. These deals come with unique benefits and risks. They require companies to stay agile and prepared to cash in on emerging opportunities.
Keep reading to learn more about cross-border M&A and cross-border restructuring, then contact our M&A team—including Founding Partner Allan Rooney, Partner Timothy Davis, and Finance Counsel David Montoya—to discover how Rooney Nimmo can help you.
What to Expect During Cross Border M&A and Restructuring
The success of a cross-border M&A transaction hinges on a company’s ability to readjust its perspective to accommodate the unique risks and due diligence considerations of cross-border M&A. For companies considering cross-border M&A for the first time, it isn’t easy to know what to expect. There are noticeable differences to consider, such as national laws and tax regulations when completing a deal in another country. In addition to these differences, companies need to consider political stability, reliability of financial information, and cultural differences.
Conduct Due Diligence Early
Early due diligence can improve the success of a cross-border M&A deal. Companies need to rely on trusted accounting and tax diligence to negotiate an appropriate deal valuation and structuring. Additionally, starting due diligence early can help identify common pitfalls, allowing a company to prevent handoff misses later on.
Commercial and operational due diligence both play a significant role in the success of cross-border M&A. They highlight critical areas to target with integration planning to increase corporate synergy. Quality commercial diligence accelerates a company’s top-line growth post-acquisition.
Data obtained from early due diligence should feedback into the deal thesis and objectives. If any part of the thesis becomes invalid after completing due diligence, a company should turn to the experienced M&A team at Rooney Nimmo for advice on the best path forward.
Detailed Integration Planning
The quality of integration planning can determine a deal’s overall success. In a survey of executives post cross-border M&A deals, incomplete pre- and post-deal integration planning was a top regret. Extending the planning timeline can help a company avoid cross-border restructuring.
A successful cross-border integration plan takes a holistic view of the integration’s financial, legal, political, and social implications. This includes adding additional time for cultural integration supported by strong leadership.
Integration risk management for cross-border M&A requires careful consideration of the political interdependencies of the deal. Combined with pre-deal due diligence, it’s possible to create a detailed integration plan that accounts for state, federal, or union objections.
Simplify Cross-Border M&A with Rooney Nimmo
Companies are using cross-border M&A to fast-track growth in a competitive global marketplace. A successful cross-border M&A transaction can propel a company toward greater operational competency, technological relevance, and geographic diversity.
From complicated foreign tax and accounting structures to significant cultural differences, many pitfalls can halt a cross-border M&A before it starts.
Set your company up for success by partnering with a trusted team that can manage all aspects of the process. Rooney Nimmo is a transatlantic boutique law firm with experience across the globe and international offices convenient for your business. Contact us today or call our New York office at (212) 545 8022 to discover how easy it is to grow your business internationally.