Global mergers and acquisitions can help expand your business and open up new markets in other countries. Global acquisitions and global mergers are more common than ever because of the connectivity of most every market. The advancements in global communication and shipping enable a business to integrate all aspects of the company no matter the location.
Global mergers can also help your company branch into business production or service sectors. International mergers and acquisitions are not without potential challenges and pitfalls. There can be significant challenges regarding different government regulation and the differences in business and personal cultures. In order to complete a successful global M&A, there are few things that a business must consider:
1. Understand the basics of global mergers and acquisitions.
2. Examine the positives and negatives of a potential global merger and acquisition.
3. Consult with international investment banking firms and the like on the viability of a global merger and acquisition.
Action Steps
The best contacts and resources to help you get it done
Realize the basic structure of an international merger and acquisition
While it is true that each merger and the companies involved are different, there are some basic truths and structures for any merger. Before you undertake any global merger, it is vital that you understand all that is involved in the process.
I recommend: Read an introduction to
global mergers and acquisitions that details some of the myths and basics of these mergers. Purchase the book
"Harvard Business Review on Mergers and Acquisitions" that details everything your company would need to know about global mergers and acquisitions. You can also listen to the webinar on global M&As by the
Human Capital Institute. Review the basics of a merger detailed in this series of articles from
Investopedia.
Evaluate the pros and cons of an international corporate merger
While you and your company want to expand and maximize your earnings potential through global mergers and acquisitions, it's important to know both sides of the merger story. If a company grows too quickly through mergers, it can hurt the long-term growth of the business.
I recommend: Review this article on the
pros and cons of mergers in which Peter Cummings of Opera Solutions talks about his experiences with the process. Review the study from
The Hindu Group, which gives another report on the positives and negatives of global mergers.
Employ the services of a global merger consultant
When dealing with a global merger, it is recommended that you contact an international investment banking company that specializes in mergers or a global mergers and acquisitions consultant. This process is simply too large and complicated to undertake without outside help.
I recommend: Contact
Deloitte, a company that specializes in these types of mergers. Speak to a international investment banking firm such as
Blackwater Capital, one of the largest investment banks specializing in international corporate mergers in the world.
Tips & Tactics
Helpful advice for making the most of this Guide
- Be sure that you are comfortable with all aspects of the global merger before you proceed because once the process begins it can be difficult and expensive to stop.
The official source of Global Mergers and Acquisitions is
the Global Mergers and Acquisitions page at Business.com
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