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This article discusses the key success factors and unique elements in cross-border mergers and acquisitions (M&A), including goals, value proposition, business fundamentals, international experience, cultural flexibility, and more. It also provides insights into M&A preparation and integration, market dominance, customer base expansion, and economic realities. Additionally, it explores the importance of expert resources, geographic distance, and cultural differences in cross-border M&A deals. Finally, it offers strategies, goals, documentation, and market positioning considerations for successful M&A transactions.
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Positioning for Cross-Border M&A Frances Grigsby April 12, 2005 International M&A Key success factors M&A preparation
M&A Taxonomy • Market Dominance • Eliminate competitors • Improve economies of scale • Larger companies, may be equals • Customer • Improve growth • Broaden customer base • Add partnerships • Typically mid-stage, with momentum Technology Round out skills & product features Complement product line Typically early stage Customer Base Early Adopter Mainstream Conservative • Other Motivators • Vertical or horizontal integration • Balancing currency and economic cycles • Customer-driven • Opportunistic – price, market consolidation
Unique Elements in Cross-Border M&A • Economic cycles and characteristics • Customer and market characteristics • Law and regulation • Role of expert resources • Geographic distance • Cultural difference
Key Success Factors • Goals and value proposition • Business fundamentals • Prior relationship • International experience • Management team • Experienced lawyer • Cultural flexibility • Not underestimating: • The role of chance • The other side of the table
M&A “House Inspection” Unique value proposition Strategy Road map Affiliation objectives Strategy and Goals Business Practices and Documentation Financial statements HR compliance Documentation IP protection Market Position Customers and partners Profitability and outlook Reputation in marketplace Focus Environment Competition Legal and regulatory Economic realities Industry outlook Internal Assets Intellectual property Management and employees Financial capacity Experience for next step
Next Level International • Market entry for technology companies • Specializing in • Business development • M&A preparation and integration • Offshoring/supply chain I99 Independence Road Concord, MA 01742 978-369-0012 www.nextlevelinternational.com